Attempts to exploit the Phillips curve tradeoff, which persisted despite Friedman’s warnings in his 1968 presidential address to the American Economic Association, contributed significantly to the Great Inflation of the 1970s - after the Great Depression, the second most serious monetary policy mistake of the twentieth century.
[8] In fact, for more than two thirds of euro area countries potential growth projections for the period 2022-27 are below their long-term average from 1999 to 2021, a period that itself was already characterised by subdued growth in many countries (Slide 8, left-hand side). Potential output has only been revised up in some of the high-debt economies.