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How do I verify Philips curve empirically for recent years?
I wanted to verify the relationship between inflation and unemployment empirically, so I took data from the World Bank and used excel to correlate them.
I got a very, very bad correlation between unemployment and inflation (from 1991 to 2016). Am I doing something wrong here?
I took these two sets of indicators: (1) Unemployment, total (modeled ILO estimate) and (2) Inflation, consumer prices. Here are the links: http://data.worldbank.org/indicator/SL.UEM.TOTL.ZS and http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG
I downloaded the data from here and I studied the data for the United States of America.