The Phillips curve returns: Inflation and unemployment link reemerges in developed countries.
The Phillips curve, which shows the relationship between inflation and unemployment, disappeared during stagflation in the 1970s but returned in the 1980s and 1990s. This study aims to explain why this happened using models, charts, and data from developed countries like the United States. The researchers explore the reasons behind the curve's disappearance and reappearance, shedding light on an important aspect of macroeconomic theory and policy.