Community and Government

Phillips Curve Guide: Definition and History of the Phillips Curve

Written by MasterClass

Last updated: Aug 31, 2022 • 4 min read

Since its invention in 1958, the Phillips curve has helped shape policy decisions and sparked controversy. Its guiding principle—that inflation and unemployment are inversely related—came into question during a period of stagflation in the 1970s, but it is nonetheless an important economic concept.