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 standard 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 trail to more(prenominal) jobs and less unemployment. (Investopedia) A poll done by Dr. Popovic confirms the administration behind the Phillips curve according to a statistical info analysis on the EU with data from 1998 to 2007. However, one view in one region of the world does not fix a concept true for the entire world. Developing countries such(prenominal) as Mexico and Colombia concluded a weak negative cor semblance and a moderate positive correlation between ostentatiousness and unemployment. Dr. Popovics article, Inflation and unem ployment: 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 notes thus rising inflation to compensate for expenditure. On the an otherwise(prenominal) hand, a country undergoing development is exposed to higher risks of unstableness cod to risk factors such as: Lack of infrastructure, mien of overweening viole nce, exploitation from world powers, and a v! ariety of other contingent 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 pin down the applicability of the Phillips Curve to developing countries, data of Colombias inflation and unemployment grade was acquired through EcoWin. Monthly average rates from butt 2002 to March...If you want to get a full essay, coiffe it on our website: OrderCustomPaper.com

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