By 1990, a number of these countries had recorded two decades of high growth and had established an enviable track record of political stability, balanced budgets and lowish inflation. If there was an “economic miracle” occurring (cf. World Bank, 1993), it is not surprising that foreign investors wanted a slice of the action.
The blue line is the Phillips curve based on data through the first half of the 1990s. The red line is the Phillips curve based on data since the second half of the 1990s. As you can see, the entire curve has shifted downward. This means that, even with the same economic conditions, the inflation rate is now lower than in the past.