The Phillips curve

From another point of view of seeing inflation in combination with unemployment, using the phillips curve as a mechanism, since it shows us these two combinations in order to regulate the inflationary case in the short term, because it affects other variables which are to depend on the economic model applied and the fiscal and monetary policies, always taking into account that a country's economy will have inflation levels. Another mistake is to believe inorganic money which does not come from the internal production of the economy, it is manufactured by the central bank to pay labor liabilities and social spending that creates large-scale inflation levels.

The mathematical and technical analysis in the field of macroeconomics represents an empirical curve with a negative slope that relates the inflation rate and the unemployment rate, since we are working with macroeconomic variables. Where they influence GDP, in the short and long term and has considerable impact, which relates inflation to unemployment and suggests that a policy aimed at price stability promotes unemployment, considering, dear reader, that inflation levels are necessary in order Minimizing this, as I said before, has a short and long-term effect.

The technical analysis graphically shows us an economy that is at point A, with a certain rate of unemployment and inflation, where it is an optimal way to reduce unemployment through increases in aggregate demand using political regulatory mechanisms fiscal and monetary, it moves until it reaches point B, with a lower unemployment rate, but in the long run the curve will move upwards, originating a new Phillips curve, at point C, in relation to the same rate. of unemployment existing in the initial situation at point A and there has only been an increase in the inflation rate with new extractives affecting the economy in its applied model.