Inflaatiokäyrä

Inflaatiokäyrä is a graphical representation used to illustrate the relationship between inflation and the level of economic activity. It is also known as the Phillips curve, but the Finnish term "inflaatiokäyrä" is more commonly used in economic analysis. The curve is often depicted as a downward-sloping line, with inflation on the vertical axis and the level of economic activity on the horizontal axis.

The concept of the Inflaatiokäyrä is based on the observation that there tends to be a trade-off between inflation and unemployment. When the economy is growing and unemployment is low, inflation tends to be high, and when the economy is experiencing a recession and unemployment is high, inflation tends to be low. However, the relationship between inflation and unemployment is not always linear, and the curve can shift over time due to changes in monetary policy or other factors.

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During the 1970s and 1980s, the Inflaatiokäyrä shifted and the trade-off between inflation and unemployment became less clear. Many economists, including Milton Friedman, argued that the curve was not stable and that attempts to control inflation by manipulating aggregate demand would ultimately fail. Today, the concept of the Inflaatiokäyrä remains an important tool in economic analysis, but its relevance has been somewhat diminished by the increasing focus on other macroeconomic indicators, such as output gaps and inflation expectations.