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Phillips curve (E3)<br />The relationship between unemployment and inflation so named by sAMUELSON and soww after Phillips attempted to identify it in 1958 by plotting data on changes in UK money wage rates for 1861-1957 against the national unemployment rates (a measure of overall demand in the UK economy). Later work on the Phillips curve sought to take into account INCOMES POLlcms and inflationary expectations. The long-run Phillips curve is vertical at the NATURAL RATE OF UNEMPLOYMENT. From the mid-1980s in the USA and UK this curve has been almost horizontal so economic policy can effect changes in unemployment without increasing inflation.
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confluence analysis (C1)<br />A general statistical method used in econometrics created by FRISCH and others
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constant prices (DO, E3)<br />A measure of an economic variable deflated to allow for price changes; for example, the NATIONAL INCOME at constant prices would show national income for a number of years at the prices of one year.
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