An easier (and ‘more statistical’) method
There is an easier method to derive the Phillips model. It invokes a more standard statistical procedure than he himself used.
Driving to work the other day I heard a radio analyst assert that the recent increase in home sales is responsible for the increase in automobile sales (McMansions come with at least two car garages you know!) The short piece didn’t offer much in terms of quantitative information and this made me wonder what data was used to support such a claim.
In an article in Economica in 1958, AWH Phillips suggested that there was a relationship between changes in wages and the level of unemployment — the lower the unemployment rate, the higher the rate of change of wages,¹ Since then, the Phillips curve has attracted a lot of theoretical analysis.²