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ï explains
The negative relationship between inflation and
unemployment.
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When we try to control inflation , the unemployment increases
and when we try to control unemployment the inflation rises.
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:Result showing
that increase in inflation by 10 percentage point per year
slow the growth of per capita ëDP by 2 to 3 percentage points
per year.
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Vaibhav, Dholakia And Kumar (2008) on the basis of their research said
lower rate of inflation relationship is positive but high rate of inflation
describes negative effect on economic growth
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h6 (2004)
Research shows that inflation has positive effect
on economic growth if the rate of inflation becomes
low up to 2% after that the effect becomes negative.
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William Seyfried (2005) ³Examining the Relationship between Employment and Economic ërowth in the
Ten Largest States´ Southwestern Economic Review
Barro, Robert, 1995, ³Inflation and Economic ërowth,´ NBER Working Paper
Peter L. Rousseau, Paul Wachtel (2002) ³Inflation Thresholds and the Finance-ërowth Nexus´
Journal of International ÷oney and Finance SSRN-id315967.pdf
Vaibhav C., R. H. Dholakia and B. Kumar (2008)³Inter-Relationship between Economic growth, Savings and
Inflation in Asia´
Huybens, E. and B. D. Smith, (1999) ³Inflation, financial markets and long-run Real activity,
´ Journal of ÷onetary Economics
Bruno, ÷. and Easterly, W. (1998) ³Inflation Crisis and Long-Run ërowth,´ J÷E 41, 3-26.
PIDE, September 02 2004, ³unemployment in Pakistan during last decade on rise´, Report released
in the dawn newspaper PIDE, Islamabad.
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