Batini, Nicoletta; Greenslade, Jennifer V. - 2003
This paper derives alternative measures of the short-run NAIRU (SRN) for the UK, the rate for unemployment at which … inflation will neither increase nor decrease in the short-run. We estimate the NAIRU jointly with price equations by using the …-run NAIRU measures prove helpful in predicting inflation and we demonstrate their usefulness in Taylor-type policy rules for the …