ANALYSIS OF RELATIONSHIP BETWEEN INFLATION AND UNEMPLOYMENT BY TIME SERIES AFTER 1980 IN TURKEY
TÜRKİYE’DE 1980 SONRASI ENFLASYON VE İŞSİZLİK ARASINDAKİ İLİŞKİNİN ZAMAN SERİLERİ İLE ANALİZİ

Author : Selen IŞIK MADEN -- Ayşegül BAYKUL - Evin AKGÜN
Number of pages : 53-63

Abstract

Inflation aggravates economic grow, increases development costs and degrades income distribution. Unemployment causes decreases in productivity. These two are undesirible economic problems. The Phillips curve is used as an analysis tool to explain the relationship between the two variables. The basis of the Philips curve is based on the view that there is a negative relationship between nominal wages and inflation. Samuelson and Solow (1960) changed the content of the curve by using the inflation rate instead of the nominal wage change. In this study, the theoretical structure of Phillips Curve analyzes developed by alternative schools of thought. Short and long term relationships between inflation and unemployment in Turkey have been examined econometrically during the period of 1980 and 2016,.

Keywords

Inflation, Unemployment, Cointegration Analysis, Error Correction Model (ECM)

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