The_History_Of_The_Phillips_Curve

The History Of The Phillips Curve History of the Phillips Curve The Phillips Curve has been vital for over 25 years in macroeconomics models. The curve was named after A. W. Phillips that in 1958 gave the best repression of the modern formulation of the curve. The technical representation is that w = f(u) which is related to the rate of wag inflation w via the function f() to the excess demand for labor as measured by U, the deviation of unemployment form its equilibrium or labor market clearing rate. (Humphrey p.5). The curve also transformed through the assumed markup of prices over wages into the price-change equation p=f(u), where p is the rate of price inflation. (Humphrey p. 5). This curve is still used and is the modern why to show the relationship between rate of change of price and unemployment. The early versions of the Phillips Curve where focused around the idea that an inflation-unemployment trade-off. Some other versions where looked at by David Hume( 1752) and Henry Thornton(1802). curve, phillips, unemployment, rate, wages, looked, labor, humphrey, demand, relationship, price, excess, 1958, very, versions, over, modern, inflation, define, change, between, years, words, wfu, way, wag, vital, via, version, usable, upward, until, united, unemployed