Inflation and Unemployment

I have a bunch of meetings this morning -- you know how those go. That will give me a chance to think about these graphs:

This is a graph of PCE core year-over-year inflation versus unemployment since 2007 (the scatterplot with headline rather than core PCE is a noisier version of this, but the basic pattern remains):

The same graph since 2008 eliminates many of the observations in the upper left part of the graph:

And, since 2009: