A STANDARD STUDY TO DETERMINE THE NATURE OF THE RELATIONSHIP BETWEEN THE INFLATION RATE AND THE UNEMPLOYMENT RATE -IN ALGERIA DURING THE PERIOD (1970-2021) USING THE ERROR CORRECTION MODEL (ECM)-
Keywords:
unemployment rate, inflation rate, Philips curve, error correction model (ECM)Abstract
This study aims to analyze and measure the relationship between the inflation rate and the unemployment rate in Algeria during the period (1970-2021), using the error correction model (ECM), data obtained from specialized bodies, such as the National Bureau of Statistics, the International Monetary Fund, and the World Bank.The study found that the relationship between the inflation rate and unemployment in Algeria during the period (1970-2021) is a one-way direct relationship, starting from the inflation rate to the unemployment rate, as An increase in the inflation rate by 1% leads to an increase in the unemployment rate by 1.98%, a result that negates the application of the Phillips curve to the Algerian economy during the study period.
References
-Murad Abdel Qader, Study of the impact of monetary variables on the exchange rate of the Algerian dinar against the US dollar during the period 1974-2003.
Master’s thesis in economic sciences, specializing in economic modelling, Faculty of Economic, Commercial and Management Sciences, Kasdi Merbah University, Ouargla, Algeria, 2011.
- National Bureau of Statistics www.ons.dz
-Khadija Hammadi, The relationship of inflation to wages in Algeria during the period (1970-2005), an econometric study. Master's thesis in Economic Sciences, Quantitative Economics Branch, Faculty of Economic, Commercial and Management Sciences, University of Algiers, Algeria, 2009.
- Naima Zirmi, Algerian foreign trade from the planned economy to the market economy, Master’s thesis in international management of enterprises, specialization in international finance, Faculty of Economic, Commercial and Management Sciences, Abu Bakr Belkaid University, Tlemcen, Algeria, 2011, p. 205.
-Soumaya Belqasimi, previously mentioned reference, pp. 250-251.
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