cFor which linkage between unemployment and inflation ? the case of the Algerian economy (1985-2012)

Abstract

The monetary policy objectives are defined as those having a natural connection with welfare. According to the magic square of N.Kaldor, this policy must achieve four objectives: economic growth, external balance, full employment and inflation control. If inflation and unemployment are two objectives of monetary policy, one wonders if these two objectives are achievable together. This article will attempt to determine this relation within the Algerian economy on one hand, and on the other hand trying to detect the determinants of unemployment and this for the period from 1985 to 2012.