Should-Read: Olivier Blanchard: The US Phillips Curve: Back to the 60s?: “Low unemployment still pushes in ation up; high unemployment pushes it down….

…Put another way, the US Phillips curve is alive. (I wish I could say “alive and well,” but it would be an overstatement: the relation has never been very tight.) Inflation In ation expectations, however, have become steadily more anchored…. The slope of the Phillips curve… has substantially declined…. [since] the 1980s… The standard error of the residual in the relation is large…