Philips Curve : Inverse Correlation between Unemployment Rate and Inflation

Philips Curve states that the higher the Unemployment Rate in a Country (for example Recession), the lower the Inflation. This makes absolute sense as the less people working, the less they will eat out and buy luxury or even basic things and hence the demand of such goods must go down and hence the price point of many things will come down and hence inflation will ease.

Of course, in the presence of cheap or plentiful money, more loans will be taken out and that would push up diescretionary spending. Hence the Central Bank raising interest rates is a must do, so that there will be less spending and inflation will come down. 

I am re-reading the Prinicples of Economics as well as the Principles of Accounting to equip myself with the better understanding of how companies, and Governments manage their money.