A.W. Phillips

A.W. Phillips was a New Zealand economist best known for introducing the Phillips Curve, which illustrates an inverse relationship between inflation and unemployment. This concept suggests that lower unemployment can lead to higher inflation, as businesses compete for workers by raising wages, which can increase prices. Phillips' work influenced economic policy, particularly in the 1960s and 1970s, as governments sought to balance these two economic factors. His ideas prompted debates on trade-offs in economic management, especially during periods of stagflation, when high inflation and unemployment occurred simultaneously.