The real problem with the Phillips curve is not that it supposes that inflation and unemployment are related, especially in the short run, but that it misconstrues that relation as involving a direct causal influence of unemployment on inflation, and vice versa, when in fact it is changes in aggregate demand that cause ...

What are the limitations of Phillips curve?

Phillips curve considers the only effect of the wages on the prices and ignores the effect of the prices on wages. This is its limitation as the increase in the prices causes an increase in the cost of living that then leads to an increase in wages.

What is the main criticism against the Phillips curve?

What is the main criticism against the Phillips curve? Inflation causes a greater demand that puts upward pressure on prices. The more that people want to (buy a certain product), the more expensive it becomes.