Economics, Econometrics and Finance
2 years ago

Inflation and Unemployment: A Ticking Time Bomb for Global Economies.

Scientific Annals of Economics and Business
Inflation – Unemployment Dilemma. A Cross-Country Analysis
Cristian Popescu, Laura Diaconu

Paper Summary

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The article explores the relationship between inflation and unemployment in G7 countries. It uses statistical methods to analyze how economic policies affect these two factors. The researchers found that in the short term, there is an inverse relationship between inflation and unemployment. However, in the long term, inflation and unemployment can both increase together. This supports the idea that trying to lower unemployment too much can lead to higher inflation.