The relation between Inflation and Unemployment The Original Phillips Curve: A. W. Phillips 1957) find a significant negative relation between unemployment and the growth rate of nominal wage. In particular. he estimates =+1 where w is the growth rate of wage(note that the estimated B is negativeThe Relation between Inflation and Unemployment • The Original Phillips Curve: A. W. Phillips (1957) find a significant negative relation between unemployment and the growth rate of nominal wage. In particular, he estimates where w is the growth rate of wage (note that the estimated  is negative. wt = +ut