The Phillips’ Curve The Phillips’ Curve is a relationship between unemployment and inflation discovered by Professor A.W. Phillips. The relationship is based on observations he made of unemployment and changes in wage levels from 1861 to 1957. He found that there was a trade-off between unemployment and inflation, so that any attempt by governments to reduce unemployment was likely to lead to increased inflation. The curve sloped down from left to right and seemed to offer policymakers a simple choice - you have to accept inflation or unemployment. You can't lower both. In short the lower the inflation, the higher the unemployment and vice versa. Kids Products Clothing Footwear Baby Care Toys/Games School Supplies Advantages of Lower Unemployment Full-employment is associated with various advantages. It reduces government spending on unemployment bene