Phillips

The Phillips curve is an economic concept showing the relationship between unemployment and inflation. It suggests that when unemployment is low, inflation tends to be higher because companies compete for fewer workers, raising wages and costs. Conversely, higher unemployment usually leads to lower inflation since demand for labor and goods decreases. Policymakers sometimes use this curve to balance efforts to reduce unemployment without causing inflation to spiral upwards. However, the relationship isn't always stable or direct, as other factors can influence inflation and employment levels simultaneously.