Insiden inflasi dan pengangguran asean-4 : pengujian teori PHILLIPS

Abstract

The success of Asean countries which consist of countries in third world has shown a effective outcome in the world. Even though, macroeconomics issues such as unemployment and inflation still fatter the Asean countries. Imbalance unemployment rate and inflation rate able to hinder the growth of economic development in Asean and if no action being taken, it can destroy the economy dynasty. Economists have assumed tahat high inflation rate won't exist in economic environment which undergo unemployment. But the inflation phenomena in 1970 have changed that assumption, where the unemployment rate at that time occur parallel with raising of inflation rate resulting in imbalance global economics. This paper is specifically prepared for assess the understanding of macroeconomics in Asean countries related to employment and inflation rate based on Phillips classic theory and modem theory of Phillips Friedman­ Phelps. To achieve the purpose of research, model of vector auto regression (VAR) is adopted to assess the relation between level of unemployment and inflation as long term economy phenomena of Asean countries. Moreover, shared universal economy through plan and policy, should specifically structured for prestigious Asean coast as a economy force for future.