LAUSR.org creates dashboard-style pages of related content for over 1.5 million academic articles. Sign Up to like articles & get recommendations!

Critique of Phillips Curve: A Case Study of Zimbabwe Economy

This study sought to determine the relationship between Inflation and Unemployment in Zimbabwe. The time series yearly data for Inflation and Unemployment from 1990 to 2017 were used for the… Click to show full abstract

This study sought to determine the relationship between Inflation and Unemployment in Zimbabwe. The time series yearly data for Inflation and Unemployment from 1990 to 2017 were used for the study. Ordinary Least Squares (OLS) was used to determine the relationship between inflation on Unemployment. Some Stationarity and Cointegration tests were carried out. Data became stationarity after first differencing using Augmented Dickey Fuller Test. There was also evidence of cointegration between the two variables using the Johansen Cointegration Test. The results of the study established a stable and permanent inverse relationship between Inflation and Unemployment in Zimbabwe, conforming to the Phillips Curve. The Zimbabwean government should, therefore, work towards growing its economy through adopting a policy mix that embraces macro-economic indicators that have a direct impact on both inflation and unemployment.

Keywords: phillips curve; zimbabwe; inflation unemployment; study

Journal Title: Economics
Year Published: 2019

Link to full text (if available)


Share on Social Media:                               Sign Up to like & get
recommendations!

Related content

More Information              News              Social Media              Video              Recommended



                Click one of the above tabs to view related content.