The Phillips Curve

In 1959, A. W. Phillips published a paper describing an apparent tradeoff  between inflation and unemployment for the United Kingdom for 1861 to 1957.  Such a negative relation suggests support for fluctuations driven by demand shocks.

Data for subsequent years has not so obviously supported the existence of a stable tradeoff between inflation and unemployment.  To examine this data more closely see Phillips Curve.
 

 

References

Phillips Curve, William R. Parke, The Econ Review.
Phillips Curve, Kevin D. Hoover, Concise Encyclopedia of Economics.
Phillips Curve, Wikipedia.
"The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957." Economica (1958), 283-99, A. W. H. Phillips.

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