The structural rate of unemployment and associated non-accelerating inflation rate of unemployment (the NAIRU) are of …

modern labour market literature NAIRU is defined as the rate of unemployment at which inflation stabilises in the absence of … any wage-price surprises. Conventional thinking about the equilibrium unemployment rate assumes that in the long run NAIRU … could lead to permanent shifts of equilibrium unemployment over time, implying that an unique long run NAIRU may not even …

equilibrium unemployment. It is shown that the NAIRU is not a clearcut concept in the open economy framework. Furthermore, it is … argued that the self-correcting mechanisms in the economy are weak, so that the actual rate of unemployment may deviate …