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A STUDY ON INFLATION & UNEMPLOYMENT IN CHINA
Transcript of A STUDY ON INFLATION & UNEMPLOYMENT IN CHINA
INFLATION & UNEMPLOYMENT IN CHINA
GROUP 3 - CT40C
Hồ Phan Anh
Khuất Thị Ngọc Anh
Nguyễn Ngọc Dũng
Nguyễn Khánh Linh
Nguyễn Lê Nhật Linh
China, one of the world fastest-growing major economies, still has to face a number of major issues
INFLATION & UNEMPLOYMENT RATE
Both inflation rate & unemployment rate
The differences in the change of AD of an economy in both long term and short term.
In place of the Phillips curve, many economists began to posit a “natural rate of unemployment.”
In short term, real unemployment rate
may not equal to
expected unemployment rate
but in long term,
as being affected by monetary policies,
it may be equal.
THE PHILLIPS CURVE PHENOMENA
The correlation coefficient between the Chinese inflation rate and unemployment rate in 2011 was -0.62.
The R square or explanatory power of this relationship is 0.38.
Namely, only 38% change in the inflation rate can be explained by the variation of the unemployment rate.
In other words, the remaining 62% variance of the inflation rate cannot be explained by the sole unemployment rate.
FISCAL, TAXATION, FINANCIAL
THE PUBLIC EMPLOYMENT
FOSTERING & DEVELOPING
THE LABOR MARKET