2 Further, the role of expectations of inflation in the Phillips curve has been developed far beyond what was understood when A.W. Phillips – who was a New Zealander, an LSE faculty member, and a statistician and former engineer – discovered what later became the Phillips curve.
The difference between the short- and longrun Phillips curves, which is now a staple of textbooks, was developed by Milton Friedman and Edmund Phelps, and the effect of making expectations rational or model consistent was emphasized by Robert Lucas, whose islands model provided an imperfect information reason for a nonvertical short-run Phillips curve.