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Phillips Curve Approach To Causality Between Inflation And Unemployment In Turkey

One of the most important macroeconomic indicators of a country is inflation and unemployment. According to the Phillips Curve approach, there is an inverse relationship between unemployment and inflation. These claims from the movement in Turkey was asked to investigate the relationship between inflation and unemployment. The study consists of three parts in general. First of all, the introductory chapter contains the definition of the topic. In the second part of the literature, there are some researches related to the subject, both domestic and foreign, from different countries and periods. In the empirical analysis section, the theoretical information about the econometric methodology used in the study was first mentioned, followed by the results related to the empirical analysis. For the period 2005-2018; was compared with the monthly data of the previous year. Eviews-9 program was used for analysis. The data of the study Turkey Statistical Institute (TSI) has been taken from the web page. "Granger Causality Analysis", "Cointegration Test" and "Error Correction Model" no relationship was found between the variables. The reason of this; macroeconomic variables are not dependent on a single factor but can affect multiple factors. In this context, it will not be very accurate to show that the variables of unemployment and inflation are almost the same as each other.

Turkey, Inflation, Unemployment, Phillips Curve


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