The stagflation experienced by many of the world's industrialized economies during the late 1960s and the 1970s showed us that

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The stagflation experienced during the late 1960s and 1970s showed that the relationship between unemployment and inflation is not as clear-cut as presented by the Phillips curve. Stagflation characterized a situation where both inflation and unemployment existed simultaneously, which contradicted the Phillips curve, leading to the conclusion that other factors affect the economy, such as supply shocks. There was no clear solution to alleviate stagflation, and government discretionary fiscal policy was not always effective.

The Stagflation Experienced by Many of the World's Industrialized Economies