Impact of monetary policy in India: Trade-off between unemployment and inflation

Abstract

Trade-off between inflation and unemployment has been extensively studied through empirical studies. This paper aims to understand people’s perception on trade-off between inflation and unemployment by conducting depth interviews. This study may bring in fresh perspective to the table at the time when RBI is intensively pursuing its inflation targeting policy to stabilize economic condition of the country. Through our research and analysis, we found out that inflation targeting is not the best tool always for economy and we suggested government to invest in avenues which will generate more employment opportunities for people of India.