Convergence of Inflation and Unemployment Rates: a Signal of Economic Slowdown?
In economic theory the Phillips curve presents the relationship between the unemployment rate and inflation rate. The inflation and unemployment rate bring important information about the stages of the economic cycle. This article attempts to find an answer to the question of whether the development...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Czech Statistical Office
2021-09-01
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| Series: | Statistika: Statistics and Economy Journal |
| Subjects: | |
| Online Access: | https://www.czso.cz/documents/10180/143550799/32019721q3_244-258_hronova_analyses.pdf/90a258d4-8016-4840-bfb6-3b5c6a13a381?version=1.1 |
| Summary: | In economic theory the Phillips curve presents the relationship between the unemployment rate and inflation rate. The inflation and unemployment rate bring important information about the stages of the economic cycle. This article attempts to find an answer to the question of whether the development of the difference between the unemployment and inflation rate, the so-called signal gap, may be an indicator of changes in the economic cycle. Quarterly data on the Czech Republic, France, Great Britain and the Republic of Korea were used to verify this hypothesis. |
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| ISSN: | 0322-788X 1804-8765 |