nairu

American  

[ney-roo] / ˈneɪ ru /

Or NAIRU

noun

Economics.

1. nonaccelerating inflation rate of unemployment: the lowest level of unemployment an economy can handle without causing inflation.

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NAIRU British  

/ ˈnaɪruː /

acronym

1. Also called: natural rate of unemployment.  non-accelerating inflation rate of unemployment: the rate of unemployment at which inflation is neither accelerating nor decelerating

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Etymology

Origin of nairu

First recorded in 1975–80; acronym

Example Sentences

This is theoretical concept is known as the NAIRU—or the non-accelerating inflation rate of unemployment, if you don’t mind a mouthful.

From Slate

If it rises above NAIRU, the labor market cools down and inflation decelerates.

From Slate

If it settles at NAIRU, the labor market is just right and inflation stabilizes.

From Slate

You might notice that both of these concepts—NAIRU and the sacrifice ratio—involve the labor market.

From Slate

Or, to put it another way: He thinks the problem is that the jobless rate is way below NAIRU.

From Slate