Named after British economist WILLIAM PHILLIPS (1914-1975), Phillips curve charts the significant relationship between the percentage change in money wages and the rate of unemployment.
Its main implication is that low inflation and low unemployment are incompatible, and so governments have to choose the best combination of both.
PHILLIPS also showed that at an unemployment rate of 2.5 per cent, stable wages could be maintained.
A W H Phillips, "The Relationship Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1967', Economica NS, vol. xxv (November, 1958), 283-99