Akbar Khodabakhshi - Assistant Professor of Economics, Bu-Ali Sina University, Hamedan
Mehran Montazeri - Master of Economics, Semnan University
Hamidreza Razavinia - Master of Economics, Mazandaran University

The relationship between inflation and unemployment had been widely discussed and examined during the last years. In 1958 William Phillips first examined this relationship on his paper “The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957”. The Phillips curve is an inverse relationship between the rate of unemployment and the rate of inflation an economy. In other words, the lower the unemployment in an economy, the higher the rate of inflation. Inflation and unemployment are major issues in macroeconomics and are also important indicators for examining the economic and political stability of countries. These indicators are closely related to people's lives. This paper examines the relationship between inflation and unemployment in Iran and India using an analytical-descriptive method based on annual data, which is extracted from World Bank Statistics for the period from1990-2017.At the time of this study, the results of the annual Iranian data show that the average inflation and unemployment rate is (19.02), (11.15) percent. There is a negative and reverse relationship between Indicator of unemployment and inflation with a steep slope. while the results of the annual Indian data show that the average inflation and unemployment rate is (7.55), (5.58) percent. There is a negative and Reverse relationship between Indicator of unemployment and inflation with a less slope. In general, India is in a better position than Iran in indicators of inflation and unemployment. It is expected that in the coming years, inflation and unemployment rate in Iran will increase and in India will decrease.

unemployment, inflation, phillips curve