On modelling of macroeconomic context of current economic development

Unemployment and inflation are regarded as the two biggest evils facing any economy today. They have distinct negative impacts on economic growth. These macroeconomic problems present issues dealt with not only by economists, politicians and governments, but also by the residents of countries whose standard of living is negatively impacted by them. The aim of this paper is to determine the influence of inflation and unemployment on economic growth, highlighting the commonalities between them in the context of economic development from the point of view robust quantile regression technique. We used robust quantile regression in traditional framework of Okun's law. Our study focuses on Slovakia's macroeconomic data. The same technique was used on relationship of another two macroeconomic indicators, unemployment rate and CPI. We have found evidence about relevance of classical Okun's law on Slovakia's data. On the contrary, to the relationship of unemployment rate and CPI quantile regression is more appropriate.