Does Phillips Curve Really Exist in India?
Tariq Ahmad Bhat
, Tariq Ahmad Lone
& Towseef Mohi ud Din
Published: December 2019
The hypothetical trade-off relationship between inflation and unemployment rate known as the Phillips Curve. It plays an important role in the decision-making process, to stabilise the economy and to target these variables to keep them as low as possible. This study analyses the empirical relationship between unemployment and the inflation rate in order to predict the trade-off between these two variables and to estimate its existence in the context of Indian economy over the period of 1991 to 2017. It finds both short and long run causal relationship between unemployment and inflation rate in India.