The document examines the relationship between inflation and unemployment in Vietnam from 1996 to 2010 based on statistics from that period. It discusses three phases: the Phillips phase where inflation and unemployment have an inverse relationship, the stagflation phase where both inflation and unemployment increase, and the recovery phase where unemployment decreases but inflation remains high. It also notes that in the long run, inflation and unemployment are unrelated according to economic theory, with unemployment remaining at the natural rate.

1. INFLATION & UNEMPLOYMENT IN VIETNAM WHAT IS THE CONNECTION ? Tut2-TR08 : Pham Que Duong Hoang Thi My Bui Thu Trang Doan Thi Thoa

3. VIETNAM STATISTICS 199 6-2010 Year Inflation rate(%) Unemployment rate(%) 1996 4.5 5.88 1997 3.6 6.01 1998 9.2 6.85 1999 0.1 6.74 2000 -0.6 6.42 2001 0.8 6.28 2002 4 6.01 2003 3 5.78 2004 9.5 5.6 2005 8.4 5.31 2006 6.6 4.82 2007 12.6 4.64 2008 4.5 4.65 2009 7 4.66 2010 4.5 4.65

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13. Unemployment Rate 0 Natural rate of unemployment Inflation Rate Long-run Phillips curve Copyright © 2004 South-Western B High inflation Low inflation A 2. . . . but unemployment remains at its natural rate in the long run. 1. When the Fed increases the growth rate of the money supply, the rate of inflation increases . . .