Phillips curve

British  

noun

1. 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

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Etymology

Origin of Phillips curve

C20: named after A. W. H. Phillips (1914–75), New Zealand economist who formulated the theory

Example Sentences

During a break, Sims said he thought some work Sargent had done looking at the trade-off between lower unemployment and higher inflation, known as the Phillips curve, had an error in it.

From The Wall Street Journal • Mar. 17, 2026

The Phillips curve also depends on an accurate reading of unemployment.

From Los Angeles Times • Sep. 30, 2022

Simply stated, one of the main tenets of the Phillips curve is that levels of unemployment influence the rate of wage increases.

From Washington Post • Jun. 12, 2022

It may also show to what extent the Fed still relies on the theory of an unemployment-inflation trade-off commonly known as the Phillips curve.

From Reuters • Nov. 25, 2015

The Swedish Academy put the following text on the internet: �The change in our understanding of the so-called Phillips curve is an excellent example of Lucas�s contributions.

From Definition & Reality in the General Theory of Political Economy by Colignatus, Thomas