The idea that the Phillips Curve
represented a stable relationship between inflation and
has proven to be true and is a keystone of present-day
was only held seriously by a minority of economist led
by Milton Friedman.
was shown wrong by statistical studies
during the 1960s.
was shown wrong by the behavior of
prices and unemployment in the United States during
If the long-run Phillips curve is
the economy is suffering from
any attempt to reduce unemployment by
increasing inflation can have only temporary
there could be no business cycle.
the accelerator would not work.
our unemployment statistics would be