The level of the unemployment rate at which prices rise at the same rate that they are expected to rise, and thus at which (since expectations needn't change) the rate of inflation does not then rise or fall. Stands for on- ccelerating nflation ate of nemployment.
Acronym for Non-Accelerating Inflation Rate of Unemployment -- the highest rate of unemployment that will not trigger unacceptably high inflation. Same as "Full Employment Point".
or non-accelerating-inflation rate of unemployment - another name for the natural rate of unemployment.
The unemployment rate consistent with a constant inflation rate. An unemployment rate greater than the NAIRU indicates downward pressure on inflation, whereas a lower unemployment rate indicates upward pressure on inflation. Estimates of the NAIRU are based on the historical relationship between inflation and the aggregate unemployment rate. CBO's procedures for estimating the NAIRU are described in Appendix B of The Economic and Budget Outlook: An Update (August 1994).
The unemployment rate consistent with a constant inflation rate. An unemployment rate higher than the NAIRU indicates downward pressure on inflation, whereas an unemployment rate lower than the NAIRU indicates upward pressure on inflation. Estimates of the NAIRU are based on the historical relationship between inflation and the unemployment rate. See inflation and unemployment.
Non-accelerating rate of unemployment. The unemployment rate at which expected and actual inflation are equal and inflation remains stable
The term NAIRU is an acronym for Non-Accelerating Inflation Rate of Unemployment. It is a concept in economic theory significant in the interplay of macroeconomics and microeconomics. This "full employment" unemployment rate is sometimes termed the "natural rate of unemployment" or the "inflation-threshold unemployment rate": if actual unemployment falls below the NAIRU, the inflation rate is likely to rise quickly (accelerate).
