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 …

This paper deals with trends and cycles of unemployment and labour-force participation. Empirical evidence on both … trends and cyclical movements in unemployment and participation is presented. Some of the mechanisms behind the observed … assessment of labour market slack of the observed interplay between unemployment and participation are discussed. The paper ends …

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 …