Unemployment and inflation: Curve ball
It has long been assumed that economic policymakers face a trade-off between unemployment and inflation. Since the mid-1980s, though, the relationship (known as the Phillips curve) has weakened. Some say it has now broken down. One theory ascribes this to foreign competition. Another posits that central banks have got better at fighting inflation. Yet many bankers still remain loyal to the theory, writes our data team (The Economist)
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