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Analysis shows a tradeoff between inflation and unemployment in Indonesia, suggesting fiscal and monetary policy implications.
This study aims to analyze the tradeoff relationship between inflation and unemployment in Indonesia using the Phillips Curve approach. This phenomenon is a central focus in macroeconomics as both indicators are closely linked and directly impact national economic stability. Using data from 2019 to 2024, this study examines the dynamics of inflation and unemployment, as well as their implications for monetary and fiscal policy. The analysis shows that although there are indications of a tradeoff pattern as described by the Phillips Curve, structural and global factors also influence this relationship. Monetary and fiscal policies during crisis, recovery, and stabilization periods play a crucial role in managing the balance between inflation and unemployment.
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Asrofi et al. (2025) studied this question.
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