Sometimes the easiest way to get to the crux of the meaning in a phrase is to strip it down to its barest essentials. In this case, I pared this phrase down to simply:
The link above will take you to a crowdsourced thesaurus called **Power Thesaurus." If you can't link to it, some choices from the list that fit the context you provided would be:
acquiesce | cool it | ease up on/go easy on | give some slack |
relax | be understanding
To this, you can the add the modifier "little," which would give you expressions such as:
"be a little acquiescent" or "cool it a little bit"
and so on and so forth down the list.
What the author of this paragraph seems to be suggesting is that even though the bankers' usual methods of analysis regarding inflation and employment are not currently evident (key clue phrase here is "disappearance of the Phillips curve") bankers need to be a little understanding because "inflation is hard."
In the following paragraph (which is important, so I will add it here):
By the way, the oft-repeated mantra that "inflation expectations are anchored" offers no solace. In fact, it makes the puzzle worse. The standard Phillips curve says inflation = expected inflation - (constant) x unemployment. Variation in expected inflation is usually an excuse for a Phillips curve failure. Steady expected inflation means the Phillips cure [sic] should work better! (But beware that anchor. Is it anchored, or just not moving?)
he gives details that suggest that bankers shouldn't automatically discount the Phillips curve or assume that the model has failed. He's suggesting that the bankers examine it more closely. Perhaps the model isn't faulty; perhaps their understanding of it is. The author is asking them to give the Phillips curve a chance because it might make more sense than they can realize at the moment. In other words ... have mercy on it.