Phillips Curve and the natural rate of unemployment. A simple approach to Peru. (1993 - 2006)

Abstract

This work tries to explain, by means of Phillips's curve (in a simple model), the relation that exists between inflation and rate of unemployment in the period from 1993 to 2006, in addition estimates the natural rate of unemployment for the above mentioned period, here evidence appears in favour of the fulfillment of Phillips's curve, one finds a negative relation between rate of unemployment and variation of the rate of inflation, that is to say that to major rates of unemployment there is a decrease in the rate of inflation. Also one thinks that the rate of national unemployment is below the natural rate of unemployment, this result shows some evidence in favour of which there could be inflationary pressures.Inflación, Tasa de desempleo; Curva de Phillips; Tasa natural de desempleo