Explanation:

It is a graphic curve which advocates a relationship between inflation and unemployment in an economy. As per the curve there is a ‘trade off’ between inflation and unemployment i.e. an inverse relationship between them.

The curve suggests that lower the inflation, higher the unemployment and higher the inflation, lower the unemployment.

During 1960s, this idea was among the most important theories of the modern economists. This concept is known after the economists who developed it— Alban William Housego Phillips (1914–75). Bill Phillips (popular name) was an electrical engineer from New Zealand and was an economist at the London School of Economics when propounded the idea.