Abstract:

Phillips curve describes the relationship between unemployment and inflation. The original curve ceased to exist after the oil shocks and in present we use the modified Phillips curve, introduced by Samuelson and Solow in 1960. From last researches that explore the Phillips curve or a modified form we can observe that in Slovakia its shape does not generally apply. The reason is process of transformation of Slovak economy, low labour mobility and the great openness of the economy. Due to the large regional differences in the Slovak economy, we decided to examine the shape of the modified Phillips curve in Slovakia by individual regions differing levels of long term unemployment and education level of the population.