Japan’s Phillips Curve Looks Like Japa

We´ve recently been looking at the Phillips Curve in A2 Economics where past unemployment and inflation data is plotted on a graph and the trade off between the two variables can be observed i.e. you can have low unemployment but only with higher levels of inflation and vice versa. The oil crisis and the stagflation of the 1970s raised questions over Phillips’ work and saw the introduction of supply side economics etc - all very dry stuff and then we found this below and here. Japan´s seemingly never ending periods of deflation have made their Phillips curve look well…a bit like Japan! Who says economists have no sense of humour!