[28]  See the insightful description by Gordon, R. (2009), “The history of the Phillips Curve: consensus and bifurcation”, Economica 78(309):10-50. [29]  See Gordon, R. (2013), “The Phillips curve is alive and well: inflation and the NAIRU during the slow recovery”, NBER Working Paper 19390. [30]  See Roberts, J.M. (2006), “Monetary Policy and inflation dynamics”, International Journal of Central Banking 2:193-230.
The Great Recession has generated a third substantial increase in federal debt, from about 35 percent of GDP in 2007 to around 75 percent at the end of this fiscal year, an increase that is consistent with other increases in sovereign debt for advanced economies after severe financial crises during the post-World War II period.5 History and common sense suggest that the federal government should again run primary surpluses sufficient over time to reduce debt to pre-crisis levels of perhaps 35 to 40 percent of GDP.