Phillips curve

Alban Phillips new Zealand born economist in 1958 suggested a relationship between unemployment rate and inflation rate.
 He said that there a historical inverse relation between unemployment and inflation. Whenever unemployment is low, inflation tends to be high. Whenever unemployment is high, inflation tends to be low. However the fact showed that there were no steady relations between them though generally he was right. There long run and short run Phillips curve exist. Long run correlation curve is shown as a vertical line and if unemployment at this rate inflation is considered to be stable. Short run curve can move inwards or outwards according to different policies such as monetary which may influence short run curve by decreasing rate of unemployment and increasing inflation. However there is no perfect market in an economy that’s why Phillips curve can not be suitable for every situation.