Modelling the relationship between unemployment and inflation according to the concept of Phillips in Algeria

Abstract EN

The objective of this study is to clarify the relationship between unemployment rates and inflation in Algeria, both theoretically and applied.

A relationship was found according to Philips' concept using both structural models and non-structural models through the estimated model elasticities.

A causal relationship according to the concept of Granger, heading from variable inflation to the variable unemployment, and that the minimum, which does not fall below the unemployment rate in Algeria, no matter how high inflation rate is 9.

22 % and that any drop in unemployment rates than this rate is due to other factors.