If inflation was too low, it was because demand was too weak and this called for monetary stimulus. Conversely, if inflation was too high, it was because demand was too strong and this called for monetary tightening. We recognised that the supply side mattered, but supply was largely treated as something that evolved fairly slowly in the background.
The task was to manage aggregate demand with interest rates. Central banks came to this general view partly because developments on the supply side were either mostly benign or favourable for managing inflation. Strong growth in international trade and deepening financial linkages between countries meant that the supply side of the global economy became very flexible.