In recent decades,the statistical inverse relationship between the inflation rate and the unemployment rate observed during the 1960s appears to have broken down.One explanation for this puzzle is provided by the

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The breakdown of the inverse relationship between inflation and unemployment in recent decades is explained by the expectations-augmented Phillips curve model, which takes into account the role of expectations in determining both inflation and unemployment. The basic Keynesian model, AD-AS model, short-run Phillips curve model, and planned aggregate expenditure model do not fully account for this breakdown.

In Recent Decades,the Statistical Inverse Relationship Between the Inflation Rate