If unemployment could be brought down to say 2 percent at the cost of an assured steady rate of inflation of 10 percent per year, or even 20 percent, this would be a good bargain.
This quote highlights the trade-off between unemployment and inflation, a concept often discussed in macroeconomic policies. It suggests that, in certain contexts, accepting a higher inflation rate might be justified if it results in significantly lower unemployment. The perspective challenges the traditional view that inflation and unemployment are inversely related and raises important questions about the acceptable limits of inflation in pursuit of employment goals. It makes us consider how policymakers balance economic stability with short-term gains, and whether such compromises are sustainable or beneficial in the long run.
