Effect of inflation on unemployment of Uganda for period 1991-2018

Abstract

The main objective of the study is to examine effect of inflation to unemployment in Uganda for the period 1991-2018 through use of Philips curve. I analyzed the data of inflation and unemployment using unrestricted vector Auto-regressive model and Granger causality test. The granger causality shows that inflation does not cause unemployment in Uganda. Inflation and unemployment are destructive rather than helpful to the economic development and growth in Uganda. According to the findings of this study, There is no short run and long run relationship between employment and unemployment .This means that there is no effect of inflation on unemployment in Uganda.