According to the quantity equation, how else besides using interestrate-based policies might central banks be able to generate higher inflation if they really wished to do so?

Since inflation is steady or not growing, the frictional unemployment is the greatest rate of unemployment. However, many economists now disagree over what amount of unemployment can be considered the typical rate.

According to research, the Reserve should allow inflation to grow from its present goal level of $2\%$in order to lower the unemployment rate. The present unemployment rate criterion of $6.5\%$was too high, and with the promise of low borrowing rates, a more reasonable level will be $5.5\%$. With the level of unemployment rising, the long-run Phillips curve was shifted to the right by $6.5\%$.

The trade-off appears to be non-operational in the long run. As a result, staff economists' research of rising inflation to reduce unemployment involves a short-run shift along the Phillips curve. The second analysis, which says the$6.5\%$ unemployment rate is far higher than it should be, follows the long-run Phillip's curve.