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> So then you get inflation that’s still high + high unemployment: not a great recipe. Does anyone with a background in economics have more insight into this?

* https://en.wikipedia.org/wiki/Stagflation

It was not 'supposed' to happen in (original/early) Keynesianism, but it occurred in the 1970s in the US, which led some folks to declare Keynesism dead/invalid. People thought about it and analyzed it some, and by the end of the 1970s models were updated with a better understanding of the mechanisms, and every text since about 1980 goes over the details.



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