CHAPTER FOUR DATA, METHODOLOGY AND ANALYSIS 4.1. Data Description It is important for the institution (BoA) that carries out the monetary policy to know the relation between inflation and unemployment because a wrong monetary policy can lead to the increase of one of them with serious consequences for the economy of the country. It is important to keep unemployment at a low level but not at such level that can cause a continuous increase in inflation. So an adequate rate of unemployment can keep inflation under control. Even though in Albania this relation between unemployment and inflation is weak. The statistical data of this thesis are taken from official sources such as INSTAT and Economy Watch. The data includes a period of time often years, from 2000 to 2010. The unemployment data are in numbers and in percentages. The inflation is measured by Average Consumer Price Change in percentage.
