Evaluate the claim that stagflation is anathema to the Phillips Curve.
The indication is that inflationary expectations have become entrenched and strongly footed in world markets. As a result, the risk of global stagflation has become significant. A drawn-out inflationary process always precedes stagflation, anathema to the so-called Phillips Curve. Following the attritional effect of inflation, the economy starts to grow below its potential. It experiences a persistent output gap, rising unemployment, and increasingly entrenched inflationary expectations.