This paper proposes a method to estimate the NAIRU for the U.S. It shares the notion of Estrella and Mishkin (1999) that defines the NAIRU as a leading indicator of inflation changes over the policy horizon. Our alternative construction offers a more theoretically sound and practically useful...

Dynamic interactions among the real exchange rate, income and imports are modelled for Australia. Evidence of one cointegrating relationship is found among these series and base structural inferences on long-run identifying restrictions of the type proposed for vector-error correction models by...