Empirical Analysis for Testing the Validity of the Phillips Curve in the Czech Republic

摘要

Inflation and unemployment are the most important economic indicators for each country. The latest information is always impatiently expected, analyzed and commented not only by economists but also by inhabitants of the country. This article goes back to the original idea of the Phillips curve as a tool for empirical verification of the relationship between inflation and unemployment. The question that arises is whether the unemployment rate can be used to explain the changes in the inflation rate and on the contrary, in the Czech Republic. The verification of this relationship will be carried out on the basis of econometric models (ADL models and cointegration analysis) on the basis of the annual time series from 1995 to 2012.