No doctrine seems better entrenched among modern economists than the notion that price stabilityfor example freedom from inflationand full employment are mutually incompatible. The idea has come to be accepted that there must be a deliberate tradeoff between unemployment and price stability. In spite of this widely accepted idea. however. there is an extraordinary period in American history. namely. the 30year period following the Civil War. when we had enormous national economic growth. full employment even with high levels of immigration. and gently but constantly declining price levels. This was a unique period in economic history. Of course. there have been times of price declines. but these have been associated with depressions. panics. or the collapse of societies.
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immigration