But the important point to take into account is that if the dominant structural factors for a flatter Phillips curve lie on the side of a more stability-oriented monetary policy in the past, these policy implications may mistakenly induce too lax a monetary policy today.
This opens up the possibility of inflation expectations becoming less well anchored and, once this scenario materialises the task of monetary policy becomes much more difficult. 2.2  Inflation dynamics and globalisation  It is thus of vital importance for policymakers to draw the right conclusions from the empirical fact that Phillips curves have changed.