A trip to hawaii for Such a rule would produce a zero average inflation rate over the long run and would have positive effects on the real economy by making the monetary sphere predictable and stable. In the wake of stagflation in the 1970s, monetarist prescriptions were tried in practice in the UNITED STATES, UNITED KINGDOM, and JAPAN, among other countries. Central banks in those countries, under strong political leadership from neo-conservative governments decisively shifted the focus of their policies to combating inflation rather than promoting employment and growth. Tightening money supply initially produced deep recessions, but that was something that Friedman had predicted would have to be endured for a period of time needed for inflationary expectations to be adjusted. In the long run, however, according to Friedman and monetarists, expectations would adjust and full employment (equal to the natural rate of unemployment) would prevail with zero or no inflation. Neo-conservative governments also turned very heavily against the trade unions, the most famous episode being Britain’s Margaret THATCHER’S confrontation with the miners’ union, which changed the nature of the British labor movement for good. Monetarists’ predictions generally turned out to be true. A trip to hawaii 2016.