Home > Terms > English, UK (UE) > Phillips curve
Phillips curve
In 1958, an economist from New Zealand, A. W. H. Phillips (1914–75), proposed that there was a trade-off between inflation and unemployment: the lower the unemployment rate, the higher was the rate of inflation. Governments simply had to choose the right balance between the two evils. He drew this conclusion by studying nominal wage rates and jobless rates in the UK between 1861 and 1957, which seemed to show the relationship of unemployment and inflation as a smooth curve. Economies did seem to work like this in the 1950s and 1960s, but then the relationship broke down. Now economists prefer to talk about the NAIRU, the lowest rate of unemployment at which inflation does not accelerate.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
Sandwiches
A sandwich is made up of one or more slices of bread with nutritious filling between them. Any kind of bread,cream or loaf bread, rolls and buns will ...
Contributor
Featured blossaries
stanley soerianto
0
Terms
107
Blossaries
6
Followers
Characters In The Legend Of Zelda Series
tim.zhaotianqi
0
Terms
40
Blossaries
4
Followers
Top 10 Telecom Companies of the World 2014
Browers Terms By Category
- Lingerie(48)
- Underwear(32)
- Skirts & dresses(30)
- Coats & jackets(25)
- Trousers & shorts(22)
- Shirts(17)
Apparel(222) Terms
- General boating(783)
- Sailboat(137)
- Yacht(26)
Boat(946) Terms
- Wireless networking(199)
- Modems(93)
- Firewall & VPN(91)
- Networking storage(39)
- Routers(3)
- Network switches(2)
Network hardware(428) Terms
- Cardboard boxes(1)
- Wrapping paper(1)
Paper packaging(2) Terms
- Printers(127)
- Fax machines(71)
- Copiers(48)
- Office supplies(22)
- Scanners(9)
- Projectors(3)