Phillips Curve

An economic concept developed by A. W. Phillips stating that inflation and unemployment have a stable and inverse relationship. According to the Phillips curve, the lower an economy's rate of unemployment, the more rapidly wages paid to labor increase in that economy.

The theory states that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment. However, the original concept has been somewhat disproven empirically due to the occurrence of stagflation in the 1970s, when there were high levels of both inflation and unemployment.


Investment dictionary. . 2012.

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  • Phillips curve — [fil′ips] n. [also P C ] a curve illustrating a theoretical inverse relationship between rates of unemployment and of inflation * * * Graphic representation of the inverse relationship between the rate of unemployment and the rate of change in… …   Universalium

  • Phillips curve — [fil′ips] n. [also P C ] a curve illustrating a theoretical inverse relationship between rates of unemployment and of inflation …   English World dictionary

  • Phillips curve — The Phillips curve is a historical inverse relation between the rate of unemployment and the rate of inflation in an economy. Stated simply, the lower the unemployment in an economy, the higher the rate of increase in wages paid to labor in that… …   Wikipedia

  • Phillips curve — In a famous article on ‘The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861 1957’, published in the journal Economica (1958), the economist A. W. Phillips argued that an inverse relationship… …   Dictionary of sociology

  • Phillips Curve — A graph that supposedly shows the relationship between inflation and unemployment . It is conjectured that there is a simple trade off between inflation and unemployment (high inflation and low unemployment, and low inflation and high… …   Financial and business terms

  • Phillips curve — noun Economics a supposed inverse relationship between the level of unemployment and the rate of inflation. Origin 1960s: named after the New Zealand economist Alban W. H. Phillips …   English new terms dictionary

  • phillips curve — ¦filə̇ps noun Usage: usually capitalized P Etymology: after A.W.H. Phillips died 1975 British (New Zealand born) economist : a graphic representation of the relation between inflation and unemployment which indicates that as the rate of either… …   Useful english dictionary

  • Phillips curve —  In economics, a measure showing the relationship between inflation and unemployment …   Bryson’s dictionary for writers and editors

  • Phillips curve — graph illustrating the level of inflation as a function of the level of unemployment (Economics) …   English contemporary dictionary

  • phillips curve —  Graph of the relationship between inflation and unemployment in an economy …   American business jargon

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