Don't be stupider than you have to be...
Arthur Okun and company thought that the NAIRU had successfully been breached in the 1960s--that they could run the U.S. economy without structural changes at 4% unemployment and 2% inflation forever. The result was the 1970s--and the fall of social democracy as a governing ideology.
Be very, very careful before you try to repeat their mistakes: better to have 4.5-5.0% unemployment than to have a few years of 3.0-4.0% unemployment followed by OPEC Shock III, productivity slowdown II, and the second coming of Ronald Reagan.
At least remember that this program worked badly the last times it was tried--whether in the U.S. in the late 1960s or in France in 1981-82.
>
>A serious question is what additional,
>simple (if major) actions, such as currency
>and capital controls,
Malaysia's in great shape right now, isn't it?
Brad DeLong