The relationship between two important macroeconomic indicators, inflation and unemployment, has been extensively studied by economists. The inverse relationship between these two variables is often referred to as the Phillips curve. However, studies have shown that the inverse relationship between these two variables does not always hold. To this end, the validity of the Phillips curve is investigated using monthly inflation and unemployment data for the Türkiye's economy from January 2005 to August 2025. The relationship between these data is examined using current tests such as the Fourier-based Quantile Toda-Yamamoto causality test and wavelet transform consistency. The study's results generally show that the Phillips curve is invalid. However, evidence supporting the validity of the Phillips curve in the Türkiye's economy has been found for certain periods. These findings are limited to the relationship between the youth unemployment rate and the consumer price index.
Mustafa Yılmaz (Wed,) studied this question.
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