• Chasing Full Employment: Understanding the NAIRU and Inflation Trade-offs

  • May 9 2025
  • Durée: 14 min
  • Podcast

Chasing Full Employment: Understanding the NAIRU and Inflation Trade-offs

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  • Résumé

  • Can unemployment ever be too low? In this episode, we explore the Non-Accelerating Inflation Rate of Unemployment—or NAIRU—a key economic concept used to gauge how low unemployment can go without triggering rising inflation. You'll learn how the NAIRU helps central banks like the RBA make informed monetary policy decisions, and why it's central to debates about full employment and price stability. We also unpack the many forces that influence the NAIRU, from globalisation and technology to worker bargaining power and long-term unemployment. This episode is perfect for anyone wanting to understand the balance between jobs and inflation in a modern economy.

    Source: https://www.rba.gov.au/education/resources/explainers/
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