Principles of Macroeconomics / Unit 9 MAC 0836 short lesson, about 20 seconds
The Short-Run Phillips Curve
Captions available
The idea
A 1958 study by A. W. Phillips of a century of British data found unemployment inversely related to wage growth. Extended to prices, it became a curve trading inflation against unemployment.
In practice
United States data through the 1960s traced that shape, unemployment falling as inflation rose.
Where people slip
A relationship holding for one decade in one country is a finding, not a law.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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