Modeling the Phillips Curve: A Quantitative Analysis of Inflation and Unemployment in India

This systematic review explores the relationship between inflation and unemployment in India through the lens of the Phillips Curve. By analyzing a comprehensive collection of empirical studies and economic data, we investigate the applicability and evolution of the Phillips Curve in the Indian context. Our review encompasses research spanning several decades, employing various econometric techniques and theoretical frameworks. We examine the short-term and long-term dynamics of the inflationunemployment trade-off, considering factors such as supply shocks, structural changes, and monetary policy shifts. The findings reveal a complex and time-varying relationship between inflation and unemployment in India, challenging the simplistic inverse relationship proposed by the original Phillips Curve. This review contributes to the ongoing debate on the relevance of the Phillips Curve in emerging economies and provides insights for policymakers navigating the delicate balance between price stability and employment objectives.