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        1 - The Causal Analysis of Relationship between Inflation Rate and Unemployment in Iran (The case study of Philip’s curve)
        تیمور محمدی عباسعلی ابونوری رویا محمدنژاد
        Abstract The high unemployment rate is one of the chronically problems in Iranian Economy. There is a large gap between natural and nominal rate of unemployment in Iran. In the recent years, the policy makers tried to decrease and control unemployment rate by undertaki More
        Abstract The high unemployment rate is one of the chronically problems in Iranian Economy. There is a large gap between natural and nominal rate of unemployment in Iran. In the recent years, the policy makers tried to decrease and control unemployment rate by undertaking monetary policies, but the outcome of such policies has increased the inflation rate significantly  especially during 1979 up to 2009 .In this paper, we tested the relationship between inflation and unemployment rates based on Philip’s curve hypothesis. Our estimation in form of two models separately, shows that, there is significant relationship between inflation wage rates in current period with previous one. In addition, the rate of inflation in each period is a function of productions level and wage rate. Also, the previous level of inflation has influenced current level of inflation rate significantly.   Manuscript profile