RELATIONSHIP BETNJEEN INFLATION AND UNEMPLOYMENT MACRO MODEL

Ratko Kravarušić; Stanko Stanić

Authors

Ratko Kravarušić Faculty of Economics, University of Banja Luka
Stanko Stanić Faculty of Economics, University of Banja Luka

Keywords:

macro-economic model, inflation, unemployment, differential equation.

Abstract

In this paper we consider quantitative relation between two microeconomic categories: unemployment and inflation. Or, subject of research is macro-economic model which has who variables (unemployment and inflation).

In economic literature relation between quoted variables known as Phillips ?s model. Therefore, base of quoted quantitative relation is that model, with expedition.

In the article we derived solutions of the noted models.

References

Chiang, C.A. Osnovne metode matematičke ekonomije, Zagreb: Mate, 1994.

Friedman, M. The Role of Monetary Policy. American Economic Review, March, 1968, 1-17

Herceg, D.; Nedić J.; Radeka, I. Kroz matematiku sa Mathematicom, Novi Sad: Institut za matematiku, 2001.

Mijatović, M. Ekonomski modeli i diferencijalne jednačine I, II; Novi Sad: Zbornik radova Više poslovne škole, 2002.

Phillips, A.NJ. The Relationship between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957., Economica, 1958, 283-299.