The relationship between the inflation rate and the unemployment rate in Poland and their long-term associations with selected macroeconomic variables
The purpose of this paper is to examine the relationship between the inflation and unemployment rates in Poland and to analyze their long-term relationships with selected macroeconomic variables: the WIG20 index, consisting of the 20 largest Polish companies noted on Warsaw Stock Exchange, the USD/...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
AGH UNIVERSITY PRESS
2024-04-01
|
| Series: | Managerial Economics |
| Online Access: | https://journals.agh.edu.pl/manage/article/view/6222 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850249178444201984 |
|---|---|
| author | Jan Koterwa Hubert Kycia Anna Czapkiewicz |
| author_facet | Jan Koterwa Hubert Kycia Anna Czapkiewicz |
| author_sort | Jan Koterwa |
| collection | DOAJ |
| description |
The purpose of this paper is to examine the relationship between the inflation and unemployment rates in Poland and to analyze their long-term relationships with selected macroeconomic variables: the WIG20 index, consisting of the 20 largest Polish companies noted on Warsaw Stock Exchange, the USD/PLN exchange rate, the Brent crude oil index, and the interest rate on 10-year government bond yields. The main objective of the study is to determine the relationship between inflation and unemployment. In this study, a vector error correction model (VECM) was used to study long-run dependence. The impulse response function and forecast error variance decomposition were also used to examine the interactions between variables. There is one long-run relationship between the factors studied. Both the values of the VECM model parameters and the results of the impulse response function indicate that there is a negative relationship between inflation and unemployment in the short term. In the long term, there is a positive relationship, resulting in the stagflation phenomenon.
|
| format | Article |
| id | doaj-art-5be70017c9c741f0b93eb64f3e373d35 |
| institution | OA Journals |
| issn | 1898-1143 2353-3617 |
| language | English |
| publishDate | 2024-04-01 |
| publisher | AGH UNIVERSITY PRESS |
| record_format | Article |
| series | Managerial Economics |
| spelling | doaj-art-5be70017c9c741f0b93eb64f3e373d352025-08-20T01:58:33ZengAGH UNIVERSITY PRESSManagerial Economics1898-11432353-36172024-04-0124210.7494/manage.2023.24.2.165 The relationship between the inflation rate and the unemployment rate in Poland and their long-term associations with selected macroeconomic variablesJan Koterwa0Hubert Kycia 1Anna Czapkiewicz2AGH University of Krakow, Krakow, PolandAGH University of Krakow, Krakow, PolandAGH University of Krakow, Krakow, Poland The purpose of this paper is to examine the relationship between the inflation and unemployment rates in Poland and to analyze their long-term relationships with selected macroeconomic variables: the WIG20 index, consisting of the 20 largest Polish companies noted on Warsaw Stock Exchange, the USD/PLN exchange rate, the Brent crude oil index, and the interest rate on 10-year government bond yields. The main objective of the study is to determine the relationship between inflation and unemployment. In this study, a vector error correction model (VECM) was used to study long-run dependence. The impulse response function and forecast error variance decomposition were also used to examine the interactions between variables. There is one long-run relationship between the factors studied. Both the values of the VECM model parameters and the results of the impulse response function indicate that there is a negative relationship between inflation and unemployment in the short term. In the long term, there is a positive relationship, resulting in the stagflation phenomenon. https://journals.agh.edu.pl/manage/article/view/6222 |
| spellingShingle | Jan Koterwa Hubert Kycia Anna Czapkiewicz The relationship between the inflation rate and the unemployment rate in Poland and their long-term associations with selected macroeconomic variables Managerial Economics |
| title | The relationship between the inflation rate and the unemployment rate in Poland and their long-term associations with selected macroeconomic variables |
| title_full | The relationship between the inflation rate and the unemployment rate in Poland and their long-term associations with selected macroeconomic variables |
| title_fullStr | The relationship between the inflation rate and the unemployment rate in Poland and their long-term associations with selected macroeconomic variables |
| title_full_unstemmed | The relationship between the inflation rate and the unemployment rate in Poland and their long-term associations with selected macroeconomic variables |
| title_short | The relationship between the inflation rate and the unemployment rate in Poland and their long-term associations with selected macroeconomic variables |
| title_sort | relationship between the inflation rate and the unemployment rate in poland and their long term associations with selected macroeconomic variables |
| url | https://journals.agh.edu.pl/manage/article/view/6222 |
| work_keys_str_mv | AT jankoterwa therelationshipbetweentheinflationrateandtheunemploymentrateinpolandandtheirlongtermassociationswithselectedmacroeconomicvariables AT hubertkycia therelationshipbetweentheinflationrateandtheunemploymentrateinpolandandtheirlongtermassociationswithselectedmacroeconomicvariables AT annaczapkiewicz therelationshipbetweentheinflationrateandtheunemploymentrateinpolandandtheirlongtermassociationswithselectedmacroeconomicvariables AT jankoterwa relationshipbetweentheinflationrateandtheunemploymentrateinpolandandtheirlongtermassociationswithselectedmacroeconomicvariables AT hubertkycia relationshipbetweentheinflationrateandtheunemploymentrateinpolandandtheirlongtermassociationswithselectedmacroeconomicvariables AT annaczapkiewicz relationshipbetweentheinflationrateandtheunemploymentrateinpolandandtheirlongtermassociationswithselectedmacroeconomicvariables |