Why would anyone still talk about a Phillip’s Curve?

Which of these models would you trust to evaluate inflation? (quarterly data since 1957)

Phillip’s curve… core inflation plotted against unemployment. (link)

which1

My model plotting core inflation against corporate profit rates minus a mix of short & long-term nominal rates… (link)

which2

Who in their right mind would still talk about the Phillip’s curve after seeing this comparison?

Comments (1) | |