Price Expectation and the Philips Curve Hypothesis: The Nigerian Case (Published)
The objective of this study was to determine if there exist asymmetry between price expectation and unemployment as captured by Philip’s curve in the Nigerian economy. In other word to determine the validity of Philips curve hypothesis in Nigeria. The Co-integration method was used to analyze this relationship between unemployment and inflation. The data were sourced from the Central Bank of Nigeria (CBN) statistical bulletin for the period under study (1970 to 2011).The result obtained revealed a direct or positive relationship between inflation and unemployment in Nigeria as against inverse relationship between the two macroeconomic problems. The implication of our finding is that policy planner’s awareness of the Nigerian case would be guided on the path of policy direction in line with these twin evil of macro economy.
Keywords: Asymmetry And National Discomfort, Macro Economy, Price Expectation, Unemployment