We examine how globalization affects the slopes of conditional Phillips curves in G7 countries. Our interpretation differs from the standard interpretation of Phillips curves in the literature because we consider that unemployment has direct and indirect effects on inflation through several channels. We focus on the roles of financial and trade globalization. Our reinterpretation of the G7 countries’ Phillips curves suggests that they were flat during the initial phase of globalization and became steeper beginning in the mid-1990s. The direct effect of labor market imbalances accounts for only a small portion of the total effect on the Phillips curve. The effects of globalization were more significant during the second phase (1996–2020).