An article in the Wall Street Journal had the headline Nobody Knows Nairu, and Thats a Problem
Question:
An article in the Wall Street Journal had the headline “Nobody Knows Nairu, and That’s a Problem for the Fed.”
a. What is the NAIRU?
b. Why are there disagreements over the value of the NAIRU?
c. Why do those disagreements pose a problem for the Fed?
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a NAIRU is the nonaccelerating inflation rate of unemployment the un...View the full answer
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