Netherlands Phillips Curve

                                                                   Netherlands Phillips Curve










The Netherlands Inflation Rate vs. Unemployment rate does not fit the Phillips curve. The only portion of the curve that slightly resembles it would be the line from unemployment rate of 0 to 6 (excluding the initial v shaped line that is from 4.25 to 0). In that portion of the graph the interest rate is decreasing while the unemployment rate is increasing. However, the rest of the graph does not represent a Phillips curve and doesn't show any inverse relation between unemployment and inflation. There are two periods of stagflation which is at the point where the inflation rate equals 2.5% and the unemployment rate is 5.8% and 7.2%. There aren't any periods with very low inflation and very low unemployment. I think this does not really represent the phillips curve, because inflation and unemployment will not always be inverse, and some factors in an economy could cause unemployment to rise while inflation rises, or unemployment to fall as inflation falls. This shows that the Phillips curve isn't necessarily applicable to all countries or necessarily correct all the time. 

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