The abdication from national policy autonomy: why the macroeconomic policy regime has become so unfavorable to labor

The macroeconomic goal of full employment, which was established during the Great Depression, fell out of favor during the 1970s as controlling inflation was deemed more important. The granting of monetary policy autonomy to central banks has allowed these entities to implement restrictive anti-inflationary measures while remaining insulated from political pressure over the resulting unemployment. The relative success of these policies suggests that they will be maintained in the near future.