A NEW LINE ON THE PHILLIPS-CURVE

Objective. This article reports the results of an empirical study of i nflation-unemployment tradeoffs. Methods. Regressions were fitted to a nnual time-series data from nineteen OECD countries from 1973 through 1992. Results. With the notable exception of the United States, it is clear from the regression results that the Phillips curve can be viewe d as a stable relationship across countries over a twenty-year period. Conclusion. The much-maligned Phillips curve has not failed empirical ly, at least not for many OECD countries.