Let us step back in time and recount what had happened during the inflation era of the 1970s. Amidst repeated supply shocks from oil prices in 1973 and 1979-80 and 4  weather-related food shocks, countries were mired in stagflation with double digit inflation accompanying a rise in unemployment. 10. The experience of the 1970s significantly changed the course of  macroeconomic thinking.
Policymakers understood that there is no permanent trade-off between inflation and output – any attempt to increase output at the cost of tolerating higher inflation will inevitably lead to high and rising inflation and unhinging of inflation expectations without any durable output gains.