Inflation-Unemployment Trade Off: Evidence from Pakistan
AbstractHigh economic growth, price stability and low unemployment are the most enviable macroeconomic goals. The success of government policies is reflected in low inflation and low unemployment. The nature and costs of inflation and unemployment can have vital impact on the economy and society. Unemployment situation in Pakistan has aggravated because of rapid population growth, lacklustre economic growth, fiscal indiscipline, escalating debt-servicing and non- development expenditure which have adversely affected Pakistan economic development and poverty reduction. Import prices and fiscal indiscipline are the major causes of inflation. The empirical results show that the Phillips curve holds in Pakistan. The reduced-form Phillips curve structure reveals that the expected inflation is significant for all periods.The current unemployment exceeds the lagged unemployment which means that unemployment has been increasing at an increasing rate and this difference causes a significant change in current inflation. Lack of governance or bad governance has remained the crux of the problem. Unless foreign policy objectives are rationalised and good governance is assured, economic problems will haunt the policy- makers and the resolution of economic problems may assume pitiless façade
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Research Centre for Social Sciences,Mumbai, India in its journal Journal of Global Economy.
Volume (Year): 8 (2012)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.rcssindia.org
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr J K Sachdeva).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.