This study analyzes the causal relationship among inflation, economic growth and unemployment in six Southeast Asian countries (Indonesia, Malaysia, Singapore, Taiwan, Thailand and Vietnam) with the time series data over 1980-2010. The empirical analyseses using Granger causality test showed that Inflation did Granger cause Economic Growth in most cases while Unemployment was also discovered to have an impact on the variability of inflation. The findings of the study carries fundamental policy implications for economists and escpecially the policy makers of these countries which are under the pressure to ensure and sustain high economic growth at low, acceptable unemployment rate and low, stable inflation rate. Policymakers should consider the policy to manage unemployment and inflation before or at least at the same time when trying to determine the overall or specific economic measures for the sake of sustainable economic growth and social development because any changes in unemployment and inflation can directly or indirectly affect economic growth while inflation and unemployment are correlated.
