A.W. Phillips (A.W. Phillips)

A.W. Phillips was an economist who discovered a relationship between unemployment and inflation, now known as the Phillips Curve. He observed that when unemployment is low, inflation tends to be higher, and vice versa. This suggests a trade-off: policymakers might reduce unemployment temporarily by accepting higher inflation, or control inflation at the expense of higher unemployment. His work highlighted the complex balancing act in managing an economy’s growth, prices, and employment levels. The Phillips Curve remains a key concept in understanding economic policy decisions and the dynamics between inflation and unemployment.