In economics, the Phillips curve is a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy. Stated simply, the lower the unemployment in an economy, the higher the rate of inflation. While it has been observed that there is a stable short run tradeoff between unemployment and inflation, this has not been observed in the long run.
Read more about Phillips Curve: History, Mathematics and The Phillips Curve, NAIRU and Rational Expectations, Theoretical Questions
Famous quotes containing the words phillips and/or curve:
“Happy the Man, who void of Cares and Strife,
In Silken, or in Leathern Purse retains
A Splendid Shilling: He nor hears with Pain
New Oysters cry’d, nor sighs for chearful Ale;”
—John Phillips (1676–1709)
“Nothing ever prepares a couple for having a baby, especially the first one. And even baby number two or three, the surprises and challenges, the cosmic curve balls, keep on coming. We can’t believe how much children change everything—the time we rise and the time we go to bed; the way we fight and the way we get along. Even when, and if, we make love.”
—Susan Lapinski (20th century)