EHC12 Macroeconomics Blog

  Emilio San Vicente Dr. Quillin Ms. Middleton ECH 12 ADV 11/6/2022 Phillips Curve of Greece Unemployment vs Inflation Greece has maintained a really diverse unemployment rate throughout the years, making it usable for the period of time where inflation decreased, and unemployment increased by the other hand. The average inflation rate for the past 10 years was close to 0 and the average unemployment was 10.5%. The low points in inflation do not reflect on unemployment and vice versa. I think that the diagram that is being presented is accurate to the past situations that Greece has presented in the past years. Now, when you see the extremes of the graph, you can see that it changes over the years. Inflation seems to be affected by unemployment and vice versa. Despite this, the trendline of the chart does not follow the Phillips Curve. When regarding a country like Greece that has a history of issues for unemployment, it affects the way the standard Phillips Curve would function. G...

  Emilio Dr. Quillin Ms. Middleton ECH 12 ADV 11/6/22 Unemployment in Greece Basically, Greece has been experiencing some high rates of unemployment in the last years, which obviously it is considered a problem for the country and for the wealth being of its economy. Some of the records that have been seen in the past years were for example around the year of 2013-14, where Greece was running - 27.5% which this rate was even higher among the young population of the country.  The unemployment that was and is still experiencing Greece is due to a prolonged resecion which therefore had led into a substantial fall in the output and decline in normal economic activity in general. Another reason that unemployment had increased in the past years, is for example the lack of competitiveness in the Eurozone, the fact of having higher labor costs and rising production costs caused the exports of Greece to be considered lower or uncompetitive, but regarding the Euro, there wasn’t a devalu...