There are many concepts to explain the effects of inflation. Rather than making a voluminous chapter on economics, let's look at one of them: the Phillips curve. It is a concept that was developed by A.W.Phillips. The concept explains the stable and inverse relationship between inflation and unemployment. The reason for choosing this concept is because this was used by economists and governments for a very long time, starting in the 1960s and 1970s. Economists now tend to disagree with the concept or have developed variations of the concept to show why the Phillips curve may only work in the short run. Over time, the way the economy and the constituents react to inflation changes. Concepts to explain ...
Inflation outcome and the Philips curve
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