True, Phillips's original 1958 paper only argued for an inverse relationship between the unemployment rate and the rate of increase in wages. It was Samuelson and Solow's 1960 paper that made the argument that increased wages would translate directly into general price increases and that, hence, there existed an inverse relationship bet…
True, Phillips's original 1958 paper only argued for an inverse relationship between the unemployment rate and the rate of increase in wages. It was Samuelson and Solow's 1960 paper that made the argument that increased wages would translate directly into general price increases and that, hence, there existed an inverse relationship between the unemployment rate and price increases -- a relationship which, when graphed, would be a downward-sloping curve that would offer "policy makers" a "menu of policy choices" over which they could "trade-off" between unemployment and inflation.
True, Phillips's original 1958 paper only argued for an inverse relationship between the unemployment rate and the rate of increase in wages. It was Samuelson and Solow's 1960 paper that made the argument that increased wages would translate directly into general price increases and that, hence, there existed an inverse relationship between the unemployment rate and price increases -- a relationship which, when graphed, would be a downward-sloping curve that would offer "policy makers" a "menu of policy choices" over which they could "trade-off" between unemployment and inflation.