I wrote a whole bunch about this in J. Bradford DeLong, "America's Peacetime Inflation: The 1970s," in Christina Romer and David Romer. eds., Reducing Inflation: Motivation and Strategy (Chicago: University of Chicago Press, 1997).(posted 8683 days ago)Unfortunately I haven't been able to do a very good job of compressing the argument into something short and intelligible. But in a nutshell, I would say that the shift away from Keynesianism was due to (a) the fading of the memory of the Great Depression, and (b) the failure of governments to strike bargains with unions in the 1970s that would preserve both high employment and low inflation...