The Phillips Curve: Outdated Model Fails to Predict Inflation Trends
The Phillips Curve, a model that shows the relationship between inflation and unemployment, is not as strong as it used to be. Recent data suggests that the trade-off between inflation and unemployment has become weaker over time. Factors like globalization and changes in the economy may not have as big of an impact on inflation as previously thought. Despite its limitations, the Phillips Curve is still a useful tool for understanding inflation trends.