This paper re-examines the structure of the Phillips Curve, which suggests a negative relationship between inflation and unemployment and a positive relationship between inflation and output growth. For many years, the Phillips curve has been acknowledged as a sound policy and forecasting tool. However, recent experience indicates that output growth, inflation, and unemployment may not be related in the manner initially proposed by Phillips. The purpose of this study is to test the relationship between growth in output and inflation and determine whether the observed relationship is sensitive to the level of development of the country.