Monetarists hold that Keynesian stimulus breeds ever-rising inflation

Evidence

Once labor-market equilibrium is reestablished at this “natural rate” of unemployment, expectations will again adjust to the new, higher, underlying rate of inflation, and it can only continue to rise. With inflation rising and unemployment not improving, Keynesianism, according to monetarists, eventually eats itself. — Mark Blyth, Austerity, 410

Categorization

• XREF: connects to: Money illusion and natural-rate logic make Keynesian stimulus self-defeating under monetarism — Mark Blyth, Austerity: The History of a Dangerous…, 410; Keynesians held deficit spending only causes inflation after full employment — Clara E. Mattei, The Capital Order: How Economists…, 1683; 1970s stagflation discredited Keynesian demand management and empowered monetarism — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 47 (+1 more)

Broader Connections

• Keynesians held deficit spending only causes inflation after full employment #responds-to (0.90) — Clara E. Mattei, The Capital Order, 1683
• 1970s stagflation discredited Keynesian demand management and empowered monetarism #qualifies (0.75) — Donald MacKenzie, An Engine, Not a Camera, 47
• Rising wages reflect monetary conditions rather than union coercion causing inflation #expands (0.75) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 976