Unemployment-Inflation Relationship in Germany

Abdullah Miraç Bükey; Murat Kalkan

Article Details

Unemployment-Inflation Relationship in Germany

Authors:

Abdullah Miraç Bükey | Murat Kalkan

Publisher:

Selcuk University

Main Topics:

İşgücü Planlaması

Journal:

Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi Vol.27 Issue 1, pp.106-118

Document Type:

Article

Publication Date:

4/2024

Document Language:

English

Document ID (Org No.):

2001316818

pISSN:

2564-7458

Keywords:

Abstract:

 The Federal Republic of Germany has been one of the historically remarkable countries socially and economically. In this context, one of the outstanding issues is undoubtedly the correlation between unemployment and inflation, which is at the intersection of economy and social policy. Therefore, in the study, the unemployment-inflation trade-off in Germany was examined with the help of macroeconomic data in the context of the ModifiedOriginal Phillips Curve, which explores the unemployment-inflation relationship. The empirical study method is time series analysis, and the monthly data set covers the period from January 1992 to April 2023. According to the studys findings, no causality relationship could be detected between unemployment and inflation variables in Germany in the period, neither in the long run nor in the short run. Therefore, it shows that the German economy does not have to put up with the inflation problem in the fight against unemployment and the unemployment problem in the battle against inflation. In this respect, it would be beneficial to thoroughly examine the German labour market structure and monetary policy strategy in the literature.

 The Federal Republic of Germany has been one of the historically remarkable countries socially and economically. In this context, one of the outstanding issues is undoubtedly the correlation between unemployment and inflation, which is at the intersection of economy and social policy. Therefore, in the study, the unemployment-inflation trade-off in Germany was examined with the help of macroeconomic data in the context of the ModifiedOriginal Phillips Curve, which explores the unemployment-inflation relationship. The empirical study method is time series analysis, and the monthly data set covers the period from January 1992 to April 2023. According to the studys findings, no causality relationship could be detected between unemployment and inflation variables in Germany in the period, neither in the long run nor in the short run. Therefore, it shows that the German economy does not have to put up with the inflation problem in the fight against unemployment and the unemployment problem in the battle against inflation. In this respect, it would be beneficial to thoroughly examine the German labour market structure and monetary policy strategy in the literature.

 The Federal Republic of Germany has been one of the historically remarkable countries socially and economically. In this context, one of the outstanding issues is undoubtedly the correlation between unemployment and inflation, which is at the intersection of economy and social policy. Therefore, in the study, the unemployment-inflation trade-off in Germany was examined with the help of macroeconomic data in the context of the ModifiedOriginal Phillips Curve, which explores the unemployment-inflation relationship. The empirical study method is time series analysis, and the monthly data set covers the period from January 1992 to April 2023. According to the studys findings, no causality relationship could be detected between unemployment and inflation variables in Germany in the period, neither in the long run nor in the short run. Therefore, it shows that the German economy does not have to put up with the inflation problem in the fight against unemployment and the unemployment problem in the battle against inflation. In this respect, it would be beneficial to thoroughly examine the German labour market structure and monetary policy strategy in the literature.

 Almanya Federal Cumhuriyeti sosyal ve ekonomik bakımdan tarihi olarak dikkate değer ülkelerden birisi olmuştur. Bu kapsamda dikkat çeken konulardan birisi de, hiç şüphesiz ekonomi ile sosyal politikanın kesişme noktasındaki, işsizlik ve enflasyon ilişkisi olmaktadır. Dolayısıyla da çalışmada işsizlik-enflasyon ilişkisini irdeleyen Modifiye EdilmişOrijinal Phillips Eğrisi bağlamında Almanyada işsizlik-enflasyon değiş tokuşu makro iktisadi veriler yardımıyla incelenmiştir. Ampirik çalışmanın yöntemi zaman serisi analizi olup aylık veri seti Ocak 1992-Nisan 2023 dönemini kapsamaktadır. Çalışmanın bulgularına göre söz konusu dönem bazında Almanyada işsizlik ve enflasyon değişkenleri arasında ne uzun dönemde ne de kısa dönemde herhangi bir nedensellik ilişkisi tespit edilememiştir. Dolayısıyla Almanya ekonomisinin işsizlikle mücadelede enflasyon sorununa, enflasyonla mücadelede ise işsizlik sorununa katlanılmak zorunda olmadığını göstermektedir. Bu açıdan Alman emek piyasası yapısının ve para politikası stratejisinin literatürde derinliğine incelenmesinde fayda görülmektedir.

Article Details

Unemployment-Inflation Relationship in Germany

Authors:

Abdullah Miraç Bükey | Murat Kalkan

Publisher:

Selcuk University

Main Topics:

İşgücü Planlaması

Journal:

Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi Vol.27 Issue 1, pp.106-118

Document Type:

Article

Publication Date:

4/2024

Document Language:

English

Document ID (Org No.):

2001316818

pISSN:

2564-7458

Germany

Unemployment

Inflation

Phillips Curve

Social PolicyAlmanya

İşsizlik

Enflasyon

Phillips Eğrisi

Sosyal Politika

Issues

Article Details

Authors: Abdullah Miraç Bükey | Murat Kalkan

Publisher: Selcuk University

Main Topics: İşgücü Planlaması

Journal: Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi Vol.27 Issue 1, pp.106-118

Document Type: Article

Publication Date: 4/2024

Document Language: English

Document ID (Org No.): 2001316818

pISSN: 2564-7458

Issues

Authors:

Abdullah Miraç Bükey | Murat Kalkan

Publisher:

Selcuk University

Main Topics:

İşgücü Planlaması

Journal:

Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi Vol.27 Issue 1, pp.106-118

Document Type:

Article

Publication Date:

4/2024

Document Language:

English

Document ID (Org No.):

2001316818

pISSN:

2564-7458