Noun
Phillips curve (plural Phillips curves)
(economics) A single-equation empirical model describing a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result within an economy.
During this time, many economies experienced high and rising unemployment, coupled with high and rising inflation, contradicting the Phillips curve 's prediction. Source: Internet
Thus, modern macroeconomics describes inflation using a Phillips curve that shifts (so the trade-off between inflation and unemployment changes) because of such matters as supply shocks and inflation becoming built into the normal workings of the economy. Source: Internet
As the short-run Phillips curve theory indicates, higher inflation rate results from low unemployment. Source: Internet
Both argued that when workers and firms begin to expect more inflation, the Phillips curve shifts up (meaning that more inflation occurs at any given level of unemployment). Source: Internet
Other important contributions include his critique of the Phillips curve and the concept of the natural rate of unemployment (1968). Source: Internet
The Friedmanian Phillips curve was an interesting starting point for Lucas, but he soon realized that the solution provided by Friedman was not quite satisfactory. Source: Internet