Phillips Curve
Phillips Curve – definition
A Phillips Curve is a curve that shows the inverse relationship between unemployment, as a percentage, and the rate of change in prices. It is named after New Zealand economist AW Phillips (1914 – 1975) who derived the curve after analysing the statistical relationship between unemployment rates and wage inflation in the UK between 1861and 1957.
La búsqueda puede acotarse después de establecer la talla aproximada de la persona que llevará la prenda. Los datos resultan más útiles al comparar dos tallas cuando las medidas queden entre ambas. La comparación puede completarse con «cómo elegir una camiseta de club» para comprobar si los resultados responden al objetivo planteado. La decisión final debería tomarse tras comprobar si la personalización afecta a la devolución.
In this simple example, a reduction in unemployment from 3% to 2% would be consistent with a rise in the inflation rate from 2% to 6%. The Phillips Curve becomes steeper the nearer the unemployment rate approaches zero %.
The Phillips Curve has been influential in developing the mathematical models used by central banks and other forecasting organisations.
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Read more on the Phillips Curve
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Listen to Tim Harford’s podcast on Phillips – The Indiana Jones of Economics
