The relationship between inflation and unemployment in Sub-Saharan Africa

Abstract

The notions of unemployment and inflation remain the main concerns of public and monetary authorities in the sense that they represent the main lever of economic policy in terms ofarbitrage. The existing relationship between these variables is old, but the paternity of this studygoes to Phillips (1958) who managed to explain an inverse relationship between unemploymentand inflation in Great Britain (1861-1957). The present study aims to verify this theory for subSaharan African countries. The estimation of the model confirms this theory. Thus, it wouldbe wise to pursue "controlled" contractionary policies to promote employment. Contractionist"policies to promote employment in the region would be appropriate. However, this economicpolicy needs to take into account the quality of institutions.