The Phillips curve in Australia has changed over time due to different monetary policies and labor market regulations. Before 1977, there was an upward sloping medium-run Phillips curve, but from 1977 to 1993, it became downward sloping. After 1993, the Phillips curve flattened out. Inflation used to follow unemployment, but now it leads it. During business cycles, the Phillips curve is always downward sloping. This pattern is also seen in other countries that use inflation targeting.