Evolution of the Phillips curve: historical analysis

The Phillips curve, which expresses the inverse relationship between inflation and unemployment in the short term, is one of the most famous models in macroeconomics. The Phillips curve model allows the government to forecast inflation and unemployment values and therefore make appropriate macroeconomic decisions. It is also taken into account when forming monetary policy, for example, when determining interest rates. Since its first description, new theories have appeared that have modified the original idea of O.W. Phillips, this was due to the emergence of new economic phenomena in the capitalist countries of the world economy, for example, the stagflation of the 1970s. The purpose of this article is to describe and study the modifications of the Phillips curve, using analytical tools. The author provides the main theories of inflation expectations, and analysis of relationship between inflation and unemployment in the Russian economy.