Macroeconomics 11th Edition by Michael Parkin

Exercise 14

Inflation and Unemployment: The Phillips Curve
Use the following news clip to work Problem.
Fed Pause Promises Financial Disaster
The indication is that inflationary expectations have become entrenched and strongly rooted in world markets. As a result, the risk of global stagflation has become significant. A drawn-out inflationary process always precedes stagflation, anathema to the so-called Phillips Curve. Following the attritional effect of inflation, the economy starts to grow below its potential. It experiences a persistent output gap, rising unemployment, and increasingly entrenched inflationary expectations.
Evaluate the claim that stagflation is anathema to the Phillips curve.