Contemporary economic theory asserts that no Keynesian stable trade-off between inflation and unemployment exists.

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According to the consensus among contemporary economists, there is no long-term stable trade-off between inflation and unemployment. This view is based on the concept of the Phillips Curve, which suggests that there is an inverse relationship between unemployment and inflation in the short run, but that this relationship breaks down over the long run due to changes in expectations and other factors. Instead of a stable trade-off, many economists argue that there is a trade-off between inflation and real economic growth, with higher inflation leading to lower growth and lower inflation leading to higher growth.

Contemporary Economic Theory Asserts That No Keynesian Stable Trade-Off Between