LATEST PUBLICATIONS
PJD 2017 Vol. 44 No. 2d
Enhancing the Philippine Legal, Regulatory, and Policy Framework for Distributed Energy Resources
PJD 2017 Vol. 44 No. 2c
Possible Effects of China's Belt and Road Initiative on Philippine Trade and Investments
PJD 2017 Vol. 44 No. 2b
Effect of Supply Chain Integration on Business Performance and Competitiveness of Philippine SMEs
PJD 2017 Vol. 44 No. 2a
Role of Subjective Perceptions and Migration Culture in the Formation of Migration Intentions: Evidence from a Rural Village in the Philippines
Publication Detail
PJD 2008 Vol. XXXV No. 1-d: Unemployment and Inflation in the Philippines: New Evidence from Vector Error Correction Model

This article empirically analyzes the relationship between unemployment rate and inflation rate in the Philippines over the period 1980-2006. The negative association between unemployment and inflation is known as the Phillips Curve because the trade-off relationship between these two variables was first pointed out by William Phillips in 1958. Since then, the Phillips Curve has remained an important foundation for macroeconomic management in various countries. The main finding of this study is that there exists a cointegrating relationship--but no causal relationship--between unemployment rate and inflation rate in the Philippines.

Philippine Institute for Development Studies
Authors Keywords
Furuoka, Fumitaka; inflation; unemployment; Philippines; Phillips Curve; vector error correction model (VECM);
Download PDF Number of Downloads
Published in 2009 and available in the PIDS Library or can be downloaded as full text Downloaded 4,747 times since September 18, 2012