The relationship this graph predicted was actually discovered by Irving Fisher in the 1920s, over thirty years before its nam
The relationship this graph predicted was actually discovered by Irving Fisher in the 1920s, over thirty years before its namesake published his work on it. It can be derived theoretically using Okun's law from the short-run aggregate supply, although its originator examined one of the properties in terms of nominal wages rather than the standard common today. Originally based on data for the United Kingdom from 1861 to 1957, it was generalized by Samuelson and Solow to the United States, but it could not explain the economic oddities of the 1970s because in the long run, it is perfectly inelastic. FTP, name this curve which in the short-run depicts an inverse relationship between unemployment and inflation.
The relationship this graph predicted was actually discovered by Irving Fisher in the 1920s, over thirty years before its namesake published his work on it.
Phillips curve