The Analysis of the Validity of the Phillips Curve in Turkey via the Fourier Cointegration and Causality Tests

Inflation and unemployment indicators are among the most significant success criteria of a country’s economy. Thus, since increase in inflation rates decreases welfare levels countries, policymakers aim to keep both at low establish their monetary fiscal policies accordingly. According Phillips curve, which reveals correlation between macroeconomic literature, an leads decrease unemployment, while decreases, increases, indicates inverse unemployment. In this respect, it is not possible find solution for simultaneously with be implemented if curve valid This study aims reveal whether or by investigating were important economic problems within 2006:01 – 2020:11 period Turkey. line purpose, Fourier ADF KPSS analyses carried out first, was concluded that relevant variables stationary level, they first differences. With cointegration analysis conducted later, no long-run correlations determined. Finally, Single Fourier-Frequency Toda & Yamamoto causality out, attempted there short-run variables. results analysis, observed from inf unemp inf, revealed changes did influence short run. context, suggesting Turkey framework considered performed.