The study looked at how changes in trend inflation and wage indexation affect the stability of the U.S. economy. They found that small changes in trend inflation only had a limited impact on economic stability, mainly in the late 1970s. Instead, the Federal Reserve's response to inflation played a bigger role in creating a stable economy during the Great Moderation period. Wage indexation also influenced policymakers' ability to keep the economy stable. Increasing the Federal Reserve's inflation target to four percent could help maintain economic stability, based on their analysis of post-1982 data.