Phillips Curve - Emilio

 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. Greece was not able to control for a long period of time inflation and unemployment, which didn’t affect that much the Phillips curve which can be clearly seen in the graph that is found below. Greece is also supported by the Eurozone, which means that the inflation won't be that high because there is support among the countries.



Sources: 


  1. Greece Unemployment Rate 1991-2022 | MacroTrends


  1. Greece Inflation Rate - October 2022 Data - 1960-2021 Historical - November Forecast (tradingeconomics.com)


  1. The Phillips Curve Economic Theory Explained (investopedia.com)

Comments

Post a Comment

Popular posts from this blog

Spain Demand Side Policies

  There are many things to be interested in when it comes to Spain. When it comes to the question of being somewhat recent, the unemployment rate is absolutely something that we should look into. In this case, Spain very strongly mirrors the United States. The cause of their unemployment crisis was the real estate bubble popping and the subsequent fallout from that.The worst of this fall out came in 2014, when unemployment skyrocketed and reached the peak of 27.2. It since then has calmed down, but it shows that thats very difficult to navigate through and very long lasting. Additionally it shows the strength of the American economy that just us crashing ruins others. There was many problems taking place, but one of the clearest was a mismatch between the employers and the populace. Even though people were out of work, and employers said that they were having trouble finding qualified candidates for their positions. One of the other issues was that there were so many people that we...
Read more

Netherlands: How effective are Demand-side policies

Image
 Netherlands: Unemployment How effective are Demand- Side Policies? In 2019 the unemployment rate was 3.4%. In 2020 it was 3.8%, while in 2021 it was 4%. As shown during the pandemic the unemployment rate in the Netherlands increased. To counteract the rising unemployment rate the Netherlands enacted supply side policies. The Netherlands created a social package to increase training and retraining effort, to help lessen job- losses, paying portions of workers wages. These policies did help the Netherlands curb a major increase in unemployment, as shown in the unemployment rate during 2020. The removal of these support methods is causing a risk for a higher unemployment rate, which can be seen with the increase to 4% in 2021.  Demand- side policies could have been enacted instead of supply side policies. The OECD 2021 Economic Survey of the Netherlands, had some suggestions about using fiscal policies, but also claimed that highly expansionary and quick fiscal policy could dera...
Read more

Switzerland - Andy Walsh

Image
Switzerland has one of the highest GDP per capacity rankings in the world. Although not a member of the EU, this European country has been successful in every factor of production to some extent. The Swiss labor force is currently very strong. Boasting a very high literacy and employment rate (qualitative) and a large number of workers in their mid-twenties to late thirties (quantitative) as seen in figure 1.1.   However, despite a highly educated population, a quantitative change in the labor force will soon occur. Currently, the large group of Swiss workers nearing retirement has a strong labor force behind them to continue to generate national revenue. However, the opposite is true for the current 25-40-year-olds. As they reach the age of retirement, the amount of workers in the labor force drastically decreases, causing a dangerous economic situation for the country that will make GDP growth far more challenging. This drop in population would cause the AS/LRAS curve to shi...
Read more