INFLATION AND UNEMPLOYMENT IN THE ROMANIAN ECONOMY

The current economic theory and practice highlights the fact thatbetween inflation and unemployment, two macroeconomic issues which affect the lives ofmillions of individuals, directly and indirectly, there is no simple correlation. Taking intoconsideration these aspects, we aim to present a theoretical and empirical view on therelationship between inflation and unemployment in this study. Also, our intention is toanalyze if in Romania, during 1990 and 2009, there is a Phillips type relation between theinflation rate and the unemployment rate. The results of this research show that, in Romania,in the long run (20 years) one cannot identify a stable, statistically significant relationshipbetween inflation and unemployment.