Non-Accelerating Inflation Rate Of Unemployment

From GM-RKB
(Redirected from NAIRU)
Jump to navigation Jump to search

A Non-Accelerating Inflation Rate Of Unemployment is a level of unemployment below which inflation rises.



References

2015

  • (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/NAIRU Retrieved:2015-5-2.
    • NAIRU is an acronym for non-accelerating inflation rate of unemployment, and refers to a level of unemployment below which inflation rises. It was first introduced as NIRU (non-inflationary rate of unemployment) in ModiglianiPapademos (1975), as an improvement over the "natural rate" of unemployment concept, [1] which was proposed earlier by Milton Friedman.

       Monetary policy conducted under the assumption of a NAIRU involves allowing just enough unemployment in the economy to prevent inflation rising above a given target figure. Prices are allowed to increase gradually and some unemployment is tolerated.

2014