'The Phillips Curve Revisited' A Panel Data Study of OECD Countries

This paper uses a panel approach to analyze the relationship between the inflation rate and the unemployment rate in 12 OECD countries (i.e. Australia, Canada, Norway, Czech Republic, Japan, Sweden, Denmark, Israel, Korea, New Zealand, United Kingdom, United State). Since the trade-off relationship between inflation and unemployment in the United Kingdom pointed out by professor William Philips in 1958, this hypothesis of “Philips Curve” remains as an important foundation for policy and macroeconomic. The main findings of this panel data analysis is that there is evidence of a significant negative relationship – which seem to indicate that there is a potential trade-off between unemployment and inflation