Bill Phillips used flowing water to model the economy

4 hours ago

Bill Phillips, creator of the Phillips Curve, built a water-flow machine to model the British economy, which impressed the London School of Economics and earned him a job.
The Phillips Curve illustrates an inverse relationship between unemployment and wage growth (a key inflation driver), showing a trade-off between employment and inflation.
After its publication in 1961, the Phillips Curve became a policy manual for governments and central banks to manage inflation, until economic shifts in the 1970s required updates.

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