Inflation in Cameroon Reduces Unemployment Rate, Study Finds.
The study looked at how inflation affects unemployment in Cameroon. They used the Phillips curve model to test if higher inflation leads to lower unemployment, and vice versa. The results showed that when inflation goes up, unemployment goes down, and when inflation goes down, unemployment goes up. This relationship was also seen in a study from 1958. However, the impact of anticipation errors on this relationship is weak, making it hard for economic agencies to predict the effect of inflation on employment. The study estimated that in normal market conditions, the natural unemployment rate in Cameroon would be 0.6% with a 21.25% inflation rate.