The time-varying NAIRU and its implications for economic policy
Article Abstract:
US Federal Reserve officials assumed that NAIRU (nonaccelerating inflation rate of unemployment) is pegged at 6% to provide policymakers with a basis for maintaining a stable rate of inflation. This assumption is tested using the 'triangle model' of the inflation process that incorporates the Phillips curve. Results show that NAIRU was fairly close to 6% during the the late 1980s economic growth and the 1990-91 recession.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1997
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The NAIRU, unemployment and monetary policy
Article Abstract:
Academicians and policymakers are engaged in a debate regarding issues on the NAIRU (nonaccelerating inflation rate of unemployment). These include the question on whether NAIRU is in a decline and whether economists should use NAIRU as an economic indicator. A model that includes data on inflation rate and unemployment rate shows that NAIRU has declined by approximately one percentage point over the past 10 years.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1997
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Vector autoregressions
Article Abstract:
Research into the effectiveness of vector autoregressions (VARs) in addressing data description, structural inference, forecasting and policy analysis is presented. It is argued that, althoug VARs have limitations with regard to structural inference and policy analysis, the alternatives do too.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 2001
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