A Study on the Policy and Theory Implications of the Relationships Between Inflation and Unemployment

Relationships betweent inflation and unemployment always being viewed by economists as a trade-off reltaions and a choice menu for government policy.Recent theory of inflation and unemployment argues that original Phillips curve did not consider the expectation of inflation and unemployment over time.Based on this point,Recnet theory of inflation and unemployment raised questions about the trade-off relationships between inflaion and unemployment of the Phillip′s curves.This view greatly widens the policy-makers thoughts.This paper mainly examines the policy implications and its development of inflation and unemployment theory.