The effect of inflation on unemployment from the perspective of the Phillips curve A standard study of a sample of developing countries during the period 1990-2018

Abstract

This research paper aims to try to highlight and study the impact of unemployment on
inflation from the perspective of the Phillips curve for a sample of developing countries, and to test
the extent to which the traditional Phillips relationship matches the Algerian economic reality and
the rest of the developing economies during the period 1991-2018 and based on economic theories,
and economic measurement tools for Panel models Dynamics, time series stability tests to avoid
false alarm, co-integration test, and Panel ARDL model, and in order to achieve the study
objective, the Phillips curve equation was estimated using the inverted transformation formula.
This study, based on the data of the study variables, concluded that there is a long-term equilibrium
integrative relationship between inflation and unemployment during the period 1991-2018, which
is a direct relationship, as the increase in unemployment by one unit leads to an increase in
inflation by 2.303562, which is a relationship that is incompatible with economic theory, and
therefore the impossibility of Applying the Phillips curve to the economies of developing countries
during the study period, and this indicates that developing countries suffer from stagflation
throughout the study period