research
Relationship between Inflation and Unemployment
Submitted
By
Anum khan
Daniya Sohail (5897)
To
Department of Business Administration
In partial fulfillment of The requirement for the
Course of
MACROECONOMICS
Accepted by the faculty
FACULTY OF BUSINESS ADMINISTRATION
Mr. Tehseen Jawaid
Advisor
Table of Contents
INTRODUCTION
Abstract 2
Introduction 3
REVIEW OF RELATED LITERATURE
2.1 Theoretical background 6
METHODOLOGY
Methodology 9
DATA ANALYSIS
Data analysis 10
Bibliography
Abstract This research was conducted to study the effects of inflation and unemployment in the economy of Pakistan. The variables are inflation and unemployment. The data was taken from 1991 to 2010. The result shows that there is a strong negative correlation between inflation and unemployment. That the inflation and unemployment cannot control at the same time and in the country like Pakistan, these two factors are the major cause of instability of the economy and causes high economic and financial loses of the country.
Chapter # 1
Introduction
Inflation and unemployment are the two big problems of macroeconomics and are two intricately linked economic concepts. Over the years there have been a number of economists trying to interpret the relationship between the concepts of inflation and unemployment. There are two possible explanations of this relationship, one in the short term and another in the long term. In the short term there is an inverse correlation between the two. As per this relation, when the unemployment is on the higher side, inflation is on the lower side and the inverse is true as well.
The problem of unemployment and inflation has broken out in all the corners of the world, including Pakistan. Following the past few decades, Pakistan has followed a sharp rise in inflation and unemployment which has destabilized the economy.
The
Submitted
By
Anum khan
Daniya Sohail (5897)
To
Department of Business Administration
In partial fulfillment of The requirement for the
Course of
MACROECONOMICS
Accepted by the faculty
FACULTY OF BUSINESS ADMINISTRATION
Mr. Tehseen Jawaid
Advisor
Table of Contents
INTRODUCTION
Abstract 2
Introduction 3
REVIEW OF RELATED LITERATURE
2.1 Theoretical background 6
METHODOLOGY
Methodology 9
DATA ANALYSIS
Data analysis 10
Bibliography
Abstract This research was conducted to study the effects of inflation and unemployment in the economy of Pakistan. The variables are inflation and unemployment. The data was taken from 1991 to 2010. The result shows that there is a strong negative correlation between inflation and unemployment. That the inflation and unemployment cannot control at the same time and in the country like Pakistan, these two factors are the major cause of instability of the economy and causes high economic and financial loses of the country.
Chapter # 1
Introduction
Inflation and unemployment are the two big problems of macroeconomics and are two intricately linked economic concepts. Over the years there have been a number of economists trying to interpret the relationship between the concepts of inflation and unemployment. There are two possible explanations of this relationship, one in the short term and another in the long term. In the short term there is an inverse correlation between the two. As per this relation, when the unemployment is on the higher side, inflation is on the lower side and the inverse is true as well.
The problem of unemployment and inflation has broken out in all the corners of the world, including Pakistan. Following the past few decades, Pakistan has followed a sharp rise in inflation and unemployment which has destabilized the economy.
The
Bibliography: Chor F T (2011) An exploration of dynamic relationship between tourist arrivals, inflation, unemployment and crime rates in Malaysia Journal of Social Economics, Vol.38 (1), 50-60. Qazi A S (2008) Impact of price instability on unemployment and economic growth in Pakistan. Journal of Economics. Lundborg and Hans S (2006) Low-Inflation Targeting and Long-Run Unemployment. Journal of Economics, Vol.108 (3), 397-418. Helder F d M (2009) Output-inflation and unemployment-inflation trade-offs under inflation targeting: Evidence from Brazil. Journal of Economic Studies, Vol.36 (3), 66-82. Jack L T (1975) Unemployment and Inflation. Financial Analysts Journal, Vol.31 (3), 21 - 28. Milton F (1977) Nobel Lecture: Inflation and Unemployment. Journal of Political economy, Vol.85 (3),451- 472. Ashfaque k and Mohammad A Q (1996) Inflation in Pakistan Revisited. Journal of Economic studies, Vol.35 (4), 747-759.