Testing Phillips Curve in Sweden

Authors

  • Vanja Šimićević Libertas International University, Zagreb, Croatia
  • Emil Lekavski Libertas International University, Zagreb, Croatia

DOI:

https://doi.org/10.54820/entrenova-2023-0003

Keywords:

Phillips curve, inflaion, unemployment, Sweden, monetary policy, econometric model

Abstract

The study aims to research the correlation between unemployment and inflation in Sweden between March 2020 - November 2021 to provide further insight into the validity of the Phillips curve. Previous research has found a contradictive relationship between unemployment and inflation. In addition, shifting market trends with lower globalization and higher inflation provide attention to evaluate the Philips curve. The focus is on Sweden because it is a small country with a high level of dependency on trade and technology. For that purpose, an econometric analysis has been applied to Swedish unemployment and inflation data between March 2020 - November 2021 to generate the correlation and examine the validity of the Phillips curve. The results indicate a weak linear relationship, suggesting that other variables than inflation have a more significant effect on unemployment than inflation. A possible explanation might be the inflation target that the Swedish Central Bank (Riksbanken) implemented in 1993, which contributed to a stable inflation level until 2021

Author Biographies

Vanja Šimićević, Libertas International University, Zagreb, Croatia

Vanja Šimičević is a Full Professor at the Libertas International University, Zagreb, Croatia. She received a PhD in quantitative economics from the University of Zagreb, Faculty of Economics and Business. Her primary area of research is focused on applications of quantitative methods, particularly statistical modelling techniques and analysis, in business, economics and other social sciences, using a wide range of statistical methods and techniques. She has published some papers on those topics in international and national journals. Her scientific work significantly contributes to applying modern statistical methods in social sciences using various statistical methods and techniques. The author can be contacted at vsimicevic@libertas.hr

Emil Lekavski, Libertas International University, Zagreb, Croatia

Emil Lekavski received a BS in International Business in 2023 at Libertas International University, Zagreb, Croatia, on the thesis "Testing Phillips curve in Sweden." He has previous experience from an internship at the European Parliament, from work at the Swedish Tax Office, and the iGaming industry in Malta. Moreover, he studied political science and the law of social welfare at Halmstad University in Sweden. Currently, he is working as a freelancer, primarily in marketing. The author can be contacted at elekavski@libertas.hr

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Published

2024-03-12

How to Cite

Šimićević, V., & Lekavski, E. (2024). Testing Phillips Curve in Sweden. ENTRENOVA - ENTerprise REsearch InNOVAtion, 9(1), 22–28. https://doi.org/10.54820/entrenova-2023-0003

Issue

Vol. 9 No. 1 (2023)

Section

Mathematical and Quantitative Methods

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Copyright (c) 2024 Vanja Šimićević, Emil Lekavski

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.