Revisiting the Phillips Curve in Keralam: An Empirical Analysis of Inflation-Unemployment Dynamics

Abstract

Research on the pattern of unemployment and inflation in Keralam from 2017-2025 is aimed at establishing the existence of
Phillips curve in the economy. There is ample evidence of the fact that higher unemployment is related to the rates of
inflation. Unemployment is high among the educated youth and women while low inflation has continued to be associated
with supply-side elements including price of food and fuel. Using data the study was conducted to ascertain whether there
was an inverse relationship between inflation and unemployment. Phillips curve theory has not been applied to Keralam's
economy. The cost-push dynamics and significant unemployment have been attributed to this.