THE PHILLIPS CURVE IN UZBEKISTAN: ANALYZING INFLATION AND UNEMPLOYMENT TRENDS AMIDST THE COVID-19 PANDEMIC

This paper examines the Phillips curve's applicability in Uzbekistan, particularly in light of recent economic disruptions caused by the Covid-19 pandemic. Traditionally, the Phillips curve posits an inverse relationship between inflation and unemployment, suggesting a trade-off between the two metrics. However, empirical evidence during the pandemic challenges this relationship. We explore whether the Phillips curve's relevance has diminished and assess alternative explanations for its changing dynamics. Using qualitative analysis of Uzbekistan's inflation and unemployment trends before and during the pandemic, we identify three main factors affecting the Phillips curve: the anchoring of inflation expectations, globalization, and nonlinearities in the inflation-unemployment relationship. The findings reveal that while traditional explanations offer some insights, the unique economic context of Uzbekistan during the pandemic demands a nuanced understanding of the Phillips curve's evolution.