This form of the Phillips Curve is basically an evaluation of the original Phillips Curve.

This was created in the 1970’s when Stagflation started to contradict the Phillips Curve. This is when high unemployment occurs at the same time as high inflation.

Some economists argued that the Phillips curve did still exist however, it move to the right.  This means that the process was still taking place and there was still an inverse relationship between unemployment and inflation level but the rate of actual inflation and unemployment increased.

Knowledge: Monetarist Economists like Miton Friedman, accept that a short run Phillips curve existed. (The SR one is usual one we see).  But he believed that in the long run, the Phillips curve was in fact a vertical line