The relation between Inflation and Unemployment The modern Phillips curve that economists use today differs in three ways from what Phillips examined First, the modern Phillips curve substitutes price inflation for wage inflation. This substitution is reasonable(since price inflation and wage inflation often move together)The Relation between Inflation and Unemployment • The modern Phillips curve that economists use today differs in three ways from what Phillips examined. – First, the modern Phillips curve substitutes price inflation for wage inflation. This substitution is reasonable (since price inflation and wage inflation often move together)