The stagflation experienced in the U.S. during the late 1960s and the 1970s showed us that

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The stagflation of the 1960s and 1970s showed that the relationship between unemployment and inflation was not as clear-cut as suggested by the Phillips curve. It demonstrated that both high inflation and high unemployment could coexist, which challenged the traditional Keynesian view that inflation could be managed by maintaining high levels of unemployment. The Phillips curve failed to explain this situation accurately, and new theories, such as rational expectations, emerged to address the issue.

The Stagflation Experienced in the U