Talk:NAIRU

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[edit] Actual values

I've been trying to search for actual estimations of the current NAIRU with little success. I know it used to be published in CBO's The Budget and Economic Outlook, but it's absent this year. Can anyone help with this and put it in the article?

[edit] RE: last sentence

Monetary policy should not and will never aim stabilizing the inflation rate at 0%, because this would, after hyperinflation and stagflation, the worst any one could do. With an inflation rate og 0% there wouldnt be any economic growth. For one reason because production would never get any cheaper nor more efficient in terms of productivity, because employers cannot lower nominal wage rates, since workers wouldnt accept. Through inflation the decrease in the real wage can be camouflaged by i.e. a rise of nominal wage (+1%) at an inflation rate of 2%, so in the end the worker is left with a 1% loss of purchasing power, which doesnt bother him too much since his paycheck figures are higher than last period anyway. Also if an inflation rate decrease is caused i.e by a hike of interest rate, it would basically eliminate investments, which causes decreasing aggregate demand , which in effect would lead to rising unemployment and Happy Birthday there s your recession parfait. Inflation should be held as stable as possible somewhere between 2-3%, like the Bank of England/UK does with a possibilty of inflation rate variation between 2-3%, trying to reach an inflation rate of 2,5% from either above or below, which gives the banking system more flexibility concerning interest rate changes etc.

You assumed constant productivity (widgets per labor hour) here, which is (hopefully) not true. After all, new techniques and tools get invented from time to time.--Whichone 17:20, 11 April 2006 (UTC)

The above long unsigned paragraph mixes up short- and long-run issues, and tells little - if anything - about what the optimal rate of inflation is in the long run. A subject professional economists have no ready-made and universally accepted answer for. However, it is safe to say that most agree that any long-run correlation between inflation and productivity growth is hard to establish statistically.--HJ 21:25, 18 July 2006 (UTC)

[edit] Citing other encyclopedia

I do not thing that citing other encylopedia is appropriate. Encyclopedia can not be appropriate source itself. —Preceding unsigned comment added by 213.164.125.199 (talk) 19:34, 25 November 2007 (UTC)