Inflation, Unemployment and Economic Growth Causality : Do Phillips and Okun’s laws work in Uzbekistan’s Economy?

Using the time series statistical data of Uzbekistan and VAR framework, we made an attempt to investigate the relationship between the key macroeconomic tools of maintaining macroeconomic stability: inflation and unemployment. Our empirical findings showed that unemployment rate and inflation are positively associated in Uzbekistan, which contradicts with the Phillips curve. However, we found the Okun’s law holds which indicates an unemployment rate and economic growth are negatively associated. Tests for Granger causality show that an increase in economic growth is not reflected on a persistent reduction in an unemployment rate, while an increase in unemployment rate deteriorate the economic growth