Phillips curve


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Phillips curve

n
(Economics) economics a curve that purports to plot the relationship between unemployment and inflation on the theory that as inflation falls unemployment rises and vice versa
[C20: named after A. W. H. Phillips (1914–75), New Zealand economist who formulated the theory]
References in periodicals archive ?
That basic relationship between unemployment and inflation is known as the Phillips Curve.
Since the 1970s, economists have maintained a near-consensus belief that the Phillips curve has a substantial slope, meaning that prices react strongly to changes in demand.
The Phillips curve typically relates inflation to the unemployment rate.
There's a lot of controversy at the Fed, however, over the Phillips Curve and the degree to which it's operative.
The Phillips curve model, which theorises that there should be a strong inverse relationship between unemployment and price inflation, is apparently not working; it is probably time for the Fed to abandon this theory, and find new models.
The traditional Phillips curve is an empirical observation from statistical plots of UK's wage inflation and unemployment rates over 1861-1957 revealing a tradeoff (inverse) relationship between the above (Phillips, 1958).
The data, both in the eurozone and the United States, is not supportive of the old verities embodied in the Phillips curve, which holds that as unemployment falls, inflation will rise.
The adherence of [Janet] Yellen, [Ben] Bernanke, [Mario] Draghi, and [Haruhiko] Kuroda, among others, to standard historical models such as the Taylor Rule and the Phillips curve has distorted capitalism as we once knew it, with unknown consequences lurking in the shadows of future years," Gross argued.
The paper revisits the issue of determinants of inflation in India in a Phillips curve framework and makes two key contributions in relation to existing studies.
Assume a simple Phillips curve with anchored expectations:
Corgel cited the economic principle the Phillips Curve, which says that inflation and employment have an inverse relationship.