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The nature of the Phillips curve in Tunisia: new empirical evidence

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  • Thouraya Boujelbene Dammak
  • Younes Boujelbene
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    Abstract

    The debate about the theoretical foundations of the nature of the relationship between inflation and unemployment has been the subject matter of multiple reinterpretations involving most of the modern macroeconomic theories. The lack of research that proved the existence of the Phillips curve in the developing countries accounts for the objective of this study. In fact, our paper examines Tunisia as a case study to empirically prove the relation between inflation rate and unemployment rate. Our findings provide evidence about the existence of a long run trade-off between the unemployment rate and the inflation rate in Tunisia.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Monetary Economics and Finance.

    Volume (Year): 2 (2009)
    Issue (Month): 2 ()
    Pages: 126-143

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    Handle: RePEc:ids:ijmefi:v:2:y:2009:i:2:p:126-143

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    Web page: http://www.inderscience.com/browse/index.php?journalID=218

    Related research

    Keywords: Phillips curve; expected inflation rate; labour productivity; productivity growth rate; cointegration; Tunisia; unemployment rate; developing countries.;

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    Cited by:
    1. Islam, Faridul & Shahbaz, Muhammad & Shabbir, Muhammad, 2011. "Phillips curve in a small open economy: A time series exploration of North Cyprus," MPRA Paper 28397, University Library of Munich, Germany.

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