The Phillips curve, as Phillips presented it in 1958, is an outcome of non-standard curve fitting. It is intended to reveal a hypothetical relation between two variables, the rate of change of money wage rates and the level of unemployment. One could ...
The Phillips curve, as Phillips presented it in 1958, is an outcome of non-standard curve fitting. It is intended to reveal a hypothetical relation between two variables, the rate of change of money wage rates and the level of unemployment. One could only ascertain this feature of the curve through careful examination of the statistical procedures taken by Phillips, which is the major purpose of this paper. It also examines Lipsey's theorization and revision of the curve.