What is the concept of the long-run Phillips curve?

What is the concept of the long-run Phillips curve?

The concept of the long-run Phillips curve suggests that in the long run, there is no trade-off between inflation and unemployment. It implies that there is a natural rate of unemployment, also known as the non-accelerating inflation rate of unemployment (NAIRU), which is the level of unemployment that is consistent with stable inflation. In the long run, any attempts to reduce unemployment below the natural rate will only result in higher inflation, while efforts to lower inflation will not have a significant impact on reducing unemployment.