The Phillips curve “probably the single most important macroeconomic relationship.”
But unstable does not mean nonexistent, and imperfect does not mean useless. As long as the tools of monetary policy influence both inflation and unemployment, monetary policymakers must be cognizant of the trade-off.
N. Gregory Mankiw, rofessor of Economics at Harvard University, NYT 9 August 2010
Death of the Phillips curve brings political foes together at the graveside
Is inflation is higher than central banks think?