Movement of unemployment and inflation in the Eurozone

Abstract

Analysis of movement of unemployment and inflation in the observed period makes the basic object of this paper. Received results are grouped on the way that they can be used during the forming of future measures of macroeconomic policy. The aim of this paper is to be determined whether and up to which measure movements of unemployment and inflation can be represented with analyzed shapes of the Phillips curve. In order to accomplish that, the basic hypothesis, which will be examined in this paper, is formulated on the following way: as the relation of unemployment and inflation in the Eurozone is closer to its inverse shape that their simultaneous movement can be more directly represented with the traditional Phillips curve. For collecting and classification of empirical data of movement of observed macroeconomic magnitudes in this paper is used a method of quantitative analysis. Methods of scientific research which were used for analyzing of theoretical concepts of the Phillips curve are a method of qualitative analysis and a comparative method.

Keywords

• concepts of the phillips curve
• macroeconomic measures
• deflation in the eurozone