that Phillips curve is not an absolute relation, but its a guideline for the choices the government have. Lowering interest rates or running a budget defict to promote employment but cause inflation and raising interest rates and running a budget surplus are bad for employment for good for inflation.
The Fed in US is raising interest rates to fight inflation but some fear it will call a recession.
It is not an absolute thing and it shifts over time. We have had low interest rates and high budget deficits for a long time and had low inflation until recently. In the 1970s the US had 'stagflation' where unemployment and inflation were both high. Some lesser developed countries have bad inflation and unemployment chronically. See
https://en.wikipedia.org/wiki/Recession
Inflation means the value of your savings is degrading over time.
These are both bad. For the most part inflation and unemployment are opposed to each other, see
https://en.wikipedia.org/wiki/Phillips_curve
that Phillips curve is not an absolute relation, but its a guideline for the choices the government have. Lowering interest rates or running a budget defict to promote employment but cause inflation and raising interest rates and running a budget surplus are bad for employment for good for inflation.
The Fed in US is raising interest rates to fight inflation but some fear it will call a recession.
It is not an absolute thing and it shifts over time. We have had low interest rates and high budget deficits for a long time and had low inflation until recently. In the 1970s the US had 'stagflation' where unemployment and inflation were both high. Some lesser developed countries have bad inflation and unemployment chronically. See
https://en.wikipedia.org/wiki/Misery_index_(economics)