NAIRU
Business & Finance abbreviation · Economics
| Stands for | Non-accelerating inflation rate of unemployment |
|---|---|
| Categories | Business & Finance |
NAIRU stands for Non-accelerating inflation rate of unemployment, an economics abbreviation.
Lowest unemployment rate an economy can sustain without causing inflation to rise, according to economic theory. When unemployment falls below the NAIRU, wage and price pressures are expected to build.
Example: With unemployment at 3.5 percent, some economists warned the labor market had dropped below the NAIRU.
Usage notes
The concept builds on the "natural rate of unemployment" proposed independently by Milton Friedman and Edmund Phelps in the late 1960s. Estimates are uncertain and shift over time, and the Congressional Budget Office publishes estimates for the US. Pronounced "NYE-roo."
Related abbreviations
More economics abbreviations
- MC – Marginal cost
- MFN – Most favored nation
- MMT – Modern monetary theory
- MPC – Monetary Policy Committee
- MPS – Marginal propensity to save
- MR – Marginal revenue
- NBER – National Bureau of Economic Research
- NFP – Nonfarm payrolls
- NGDP – Nominal gross domestic product
- NIRP – Negative interest-rate policy
- NTB – Non-tariff barrier
- ODA – Official development assistance