Is Short-Run Phillips Curve True? : Evidence from Azerbaijan

In this paper, we have analysed relationship between unemployment rate and inflation rate in Azerbaijan. Topic of correlation between these two macroeconomic indicators has always attracted the attention of the famous economists. Phillips curve shows the negative trade-off between these two macroeconomic indicators; inflation rate and unemployment rate. A.W.Phillips examined wage inflation rather than price inflation, but we assume these variables usually move together. However, this curve is not appropriate for Azerbaijan. We have used data related to the period of 2000-2015. Historical data related to this period does not support this model at all.  As a result of our analysis, we have found that, there is no any strong negative correlation between unemployment rate and inflation rate. In the paper, we have used statistical graphs, correlation analysis and descriptive statistics