Spain Phillips Curve - Micah Weinstock

 

My data absolutely does not follow the phillips curve. The data makes the phillips curve look almost obnoxiously wrong. Spain does have significant problems when it comes to inflation and unemployment, so it is possible that this curve would work in an environment such as the USA, but here it looks to be incredibly far off. The trend that we see is high inflation with lowering levels of unemployment circling into high unemployment and lowering inflation. Though, unemployment can compare on a global scale, inflation at the lowest being 14% is ridiculously high.  The only rational explanation that I can think of in this moment in time is that Spain might be importing too much of its goods. That would be a reason why the prices are always inflating by so much and why unemployment is always shifting - it just has to do with their trade treaties with other countries. Other than that I am struggling to think of a reason for such a circular shaped graph. What is intriguing is the fact that the original curve missed the mark so much. So, my question to anyone reading is, who missed the mark, me or the curve?



I didn't use sources. I was very sure that I was supposed to be evaluating so I'm not sure what I would be citing.

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