Low Inflation Sparks Debate: Will Prices Rise in the Next Years?
The Phillips curve, which shows the relationship between inflation and unemployment, has changed in the past 20 years. Some say unemployment no longer affects inflation. However, it's possible that when inflation is low, the curve is flat. This means inflation may not change much in the future. But if the curve is nonlinear, inflation could increase moderately in the next few years. Unemployment levels in the coming years will help determine which hypothesis is correct.