What Does NAIRU Stand For?

NAIRU stands for Non Accelerating Inflation Rate Of Unemployment

NAIRU, or Non Accelerating Inflation Rate Of Unemployment, refers to the specific level of unemployment at which inflation remains stable. It suggests that when unemployment is at this level, inflation does not accelerate, indicating a balance between labor supply and demand. The NAIRU concept is used by economists to understand the relationship between unemployment and inflation, helping policymakers evaluate the economic conditions that might lead to inflationary pressure or deflationary trends.