Estrella, Arturo; Mishkin, Frederic S. - 2021
In this paper we rethink the NAIRU concept and examine whether it might have a useful role in monetary policy. We argue … that it can, but success depends critically on defining NAIRU as a short-run concept and distinguishing it from a long …-run concept like the natural rate of unemployment. We examine what effect uncertainty has on the use of NAIRU in policy …