One of the mysteries of the English language finally explained.
A supposed inverse relationship between the level of unemployment and the rate of inflation.
- ‘The results of this study suggest that the Federal Reserve can afford to support continued economic growth and combat recession even with unemployment in the 4.5 percent range, or for as long as the Phillips curve remains flat.’
- ‘The Phillips curve over-predicted wage gains, let alone unit costs and inflation.’
- ‘Moreover, Keynesian explanations for inflation turned heavily on the Phillips curve, which postulated an inverse correlation between the level of unemployment and the rate of inflation.’
- ‘Many prominent economists have dismissed the idea of the Phillips curve altogether and also remain skeptical of the NAIRU.’
- ‘Clearly, the linear relationship between unemployment and inflation posited by the Phillips curve does not hold.’
1960s: named after Alban W. H. Phillips (1914–75), New Zealand economist.
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