Phillips Curve
The Phillips curve is an economic concept developed by A. W. Phillips showing that inflation and unemployment have a stable and inverse relationship. The theory states that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment. However, the original concept has been somewhat disproven empirically due to the occurrence of stagflation in the 1970s, when there were high levels of both inflation and unemployment.
The Breaking Down ‘Phillips Curve’
The concept behind the Phillips curve states the change in unemployment within an economy has a predictable effect on price inflation. ....
