why has the phillips curve flattened 
there have been periods when unemployment rates have declined even as inflation remained low suggesting a flattening of the phillips curve in part this can be attributed to concerted efforts by the federal reserve to keep inflation low and stable which may have weakened the relationship between inflation and labor market performance 9the bottom linethe phillips curve is an economic theory positing an inverse relationship between inflation and unemployment it resonated with economists in the 20th century but became increasingly disputed in the 1970s which saw rising unemployment and inflation simultaneously today economists have adapted new models to explain the relationship between unemployment and inflation however some economists still maintain that the phillips curve is useful to consider despite its limitations 