Phillips curve in modern economy: modifications and practical applicability

The relevance of the study is due to the fact that both inflation and unemployment are important factors of macroeconomic instability. The relationship between these indicators is ambiguous and significantly affects the situation in the short and long term. This forces the government to choose priorities for regulating either reducing inflation or reducing unemployment. The paper examines the modification of the Phillips curve taking into account various approaches in economic theory. The authors assessed the possibilities of adapting the classical model to the modern economy and the economy of the Russian Federation, and increasing the effectiveness of government actions. Based on the results of the study, the authors conclude that the classical and modified Phillips curve remains relevant for the modern economy of the Russian Federation, despite the risks associated with the instability of the political and economic situation.