The Puzzle of Unemployment and Inflation: A Causality Analysis to Ethiopia

Minyahil Alemu Haile

Abstract


The puzzle of unemployment and inflation has remained controversial. The choice between the two ends up with cost borne from the other end. Of course, the policy aim is to keep them both to their minimum possible rates. Countries need to examine the dynamics between the two and choose one with lesser harm to the general system. We applied Granger Causality approach to examine the nature of causality between inflation and unemployment to Ethiopia, using a time series running from 1984 to 2018. Accordingly, the-two-way causality between inflation and unemployment (cyclical) variables has been confirmed. Thus, macroeconomic policies need to appreciate this interdependence while designing policy settings.


Keywords


Granger Causality, Inflation, Phillips Curve, Unemployment

Full Text:

PDF


 

Indexing and Abstracting Services

                                            
 

Other Sources and Services

   
 

License

Creative Commons Lisansı
Journal of International Trade, Logistics and Law is licensed under a Creative Commons Attribution-Gayriticari-NoDerivs 4.0 Unported License.
 

Mailing Address

  Journal of International Trade, Logistics and Law
Küçükyalı E-5 Kavşağı, İnönü Caddesi, No: 4
Küçükyalı, Maltepe, İSTANBUL, TURKEY
E-mail : editor@jital.org