An Analysis of the Application of Phillips Curve
Abstract
The relationship between inflation and unemployment is a basic problem in Economics. Based on the analysis of this relationship from 1990 to 2019, this paper finds that the inflation rate and unemployment rate in China obey the Phillips curve law in some years, but they also show the anti-Phillips or irregular situation in some years. This paper explores the causes of this phenomenon from the aspect of China's national conditions and uses Eviews to build two models: Phillips curve and Phillips-Okun curve to study the applicability of Phillips curve in China's macroeconomic operation. It turns out to be the case that there are some Phillips curve rules in China's economy. And we should treat it dialectically, adopt the parts suitable for the national conditions and make full use of them to let them play an important role in China's economic and social development.