Okuzeka
Economics vocabulary · Jobs and Unemployment

Phillips curve

Meaning in economics, with examples

/ˈfɪlɪps kɜːv/nounAdvanced term

In economics, Phillips curve means: A model showing a short-run trade-off between unemployment and inflation: when unemployment is low, wages and prices tend to rise faster.

In Turkish: Phillips eğrisi

How it is used

Named after the economist A. W. Phillips, who studied UK data on unemployment and wage growth in 1958. The 1970s, with high inflation and high unemployment together, showed that the trade-off is not stable in the long run. Economists say the Phillips curve has flattened or steepened.

Example sentences

  1. According to the Phillips curve, falling unemployment should push inflation up.

  2. Some economists argue that the Phillips curve has become much flatter in recent decades.

Common collocations

  • a flat Phillips curve
  • short-run Phillips curve
  • long-run Phillips curve
  • the Phillips curve trade-off
  • unemploymentThe situation of people who have no job but are available for work and actively looking for one; also the number or share of such people.
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • trade-offA situation in which getting more of one thing means accepting less of another, so you have to balance two goals against each other.
  • full employmentA situation in which almost everyone who wants a job can find one; some unemployment still exists because people change jobs or lack the right skills.
  • stagflationA painful mix of high inflation, weak or no growth and rising unemployment, all happening at the same time.

More terms: Jobs and Unemployment

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This page explains English vocabulary for learners. It is not financial advice.