Empirical study on trade off between inflation targeting and unemployment

Abstract

In India, there is a lot of cry about maintaining the inflation rate under a certain percentage while no one pays emphasis on unemployment. The society is divided into the following age categories i.e. under 20, 20-25, 25-30, 30-35, 35-60 and above 60 years of age. The focus of the study is to gauge the perspective of people from different age groups about inflation rate and unemployment rate. The empirical data hence collected is used to analyse the theory of Philips curve and test the existence of same in India. This report contains the finding of the empirical study regarding the trade off between inflation targeting and employment.