The present paper looks at the notion of a NAIRU and asks whether it continues to stand up to rigorous analysis in terms of both its theoretical underpinnings or of its empirical applicability. The paper addresses the essential questions in relation to an examination of the NAIRU, namely:...

This paper looks at the notion of a NAIRU (non-accelerating inflation rateof unemployment) and asks whether it continues to stand up to rigorous analysis in terms of both its theoretical underpinnings or of its empirical applicability.