Philips curve amended by Milton Friedman.(posted 8034 days ago)The great Milton Friedman, (among others) showed that the Philips curve holds (basically) true as a negative relationship for UNANTICIPATED inflation and CYCLICAL unemployment.
However in the past 20-30 years, (and especially during the 1970's) cyclical unemployment has been a diminishing component of total unemployment while STRUCTURAL unemployment has played an increasing role.
In essence such things as bad government policy and the 1973 oil embargo can "shift" the philips curve resulting in high unemployment AND high inflation. The converse also holds.
~Bob