Phillips Curve Austria - Isaak

 The Phillips curve does not fit with Austria's unemployment and inflation rates. The relationship is everywhere seemingly random and just happens to be what it is. A standard Phillips curve is an inverse exponential graph that is supposed to slope down. The higher the inflation the lower the unemployment and the lower the inflation the higher the unemployment. Austria’s inflation-to-unemployment graph does not follow the Phillips curve at all; the unemployment and inflation rates tend to just go wherever they feel like it and do not correctly reflect at all what the “correct” pattern should be. Sometimes unemployment is high while the inflation rate is high. 

The thing that most disagrees with the phillips curve is the very far right point on the graph which has the highest unemployment and the highest inflation. There are some years where the phillips curve does somewhat hold true however there are only four points that appear to conform with the curve so this curve in my opinion is not an accurate representation of real world economic activity.

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