Phillips Curve

Mario Pacheco Statistics Prof. Dudukovic May 10, 2012 Phillips Curve Statistical analysis of info must be followed by accurately stating the conclusion without misinterpreting the results. The Phillips curve is an display case of a pattern which should not be treated as an scotch thought applicable to every country. Phillips curve is a surmise which states that with economic growth comes largeness, which in turn should execute to more(prenominal) jobs and less unemployment. (Investopedia) A poll done by Dr. Popovic confirms the dodging behind the Phillips curve according to a statistical selective information analysis on the EU with data from 1998 to 2007. However, one charter in one region of the world does not bless a concept true for the entire world. Developing countries much(prenominal)(prenominal) as Mexico and Colombia concluded a weak negative cor comparison and a moderate positive correlation between splashiness and unemployment. Dr. Popovics article, Inflation and unemployment: Phillips Regularity in the EU, states: negative additive relation between the phenomena and their moderate co-dependence. (Popovic 2012) In a positive economy, such as the EU from 1998 to 2007, stability female genitals be expected in addition to growth and expansion which creates jobs.

As jobs are created, the population is capable of spending additional cash thus rising inflation to compensate for expenditure. On the an otherwise(prenominal) hand, a country undergoing development is exposed to higher risks of unstableness repayable to risk factors such as: Lack of infrastructure, mien of spendthrift violen! ce, exploitation from world powers, and a variety of other realizable obstacles developing countries are exposed to. Consequently, economical concept such as the Phillips Curve, is not a concept which can be recognized as applicable to the world. In exhibition to learn the applicability of the Phillips Curve to developing countries, data of Colombias inflation and unemployment grade was acquired through EcoWin. Monthly average rates from action 2002 to March...If you want to get a full essay, coiffe it on our website: OrderCustomPaper.com

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