How try to reduce unemployment at time of rising inflation

Reference no: EM131022208

In a discussion of monetary policy in the United Kingdom, an article in the Economist magazine, quoted a publication of the British Institute for Economic Affairs as arguing that: "To try to use monetary policy to reduce unemployment when inflation is already above target is playing with fire and could lead us down the road that we followed in the 1970s." What does the author mean by "the road that we followed in the 1970s"? How would trying to reduce unemployment at a time of rising inflation be traveling down this road?

Reference no: EM131022208

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