Of course, more complicated scenarios in which policy becomes more effective and the underlying economic environment becomes more stable are possible and indeed likely. With this bit of theory as background, I will focus on two key points.
First, without claiming that monetary policy during the 1950s or in the period since 1984 has been ideal by any means, I will try to support my view that the policies of the late 1960s and 1970s were particularly inefficient, for reasons that I think we now understand.