Journal of Economic Perspectives: Vol. 16 No. 4 (Fall 2002)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


JEP - All Issues

The NAIRU in Theory and Practice

Article Citation

Ball, Laurence, and N. Gregory Mankiw. 2002. "The NAIRU in Theory and Practice ." Journal of Economic Perspectives, 16(4): 115-136.

DOI: 10.1257/089533002320951000


This paper discusses the NAIRU--the non-accelerating inflation rate of unemployment. It first considers the role of the NAIRU concept in business cycle theory, arguing that this concept is implicit in any model in which monetary policy influences both inflation and unemployment. The exact value of the NAIRU is hard to measure, however, in part because it changes over time. The paper then discusses why the NAIRU changes and, in particular, why it fell in the United States during the 1990s. The most promising hypothesis is that the decline in the NAIRU is attributable to the acceleration in productivity growth.

Article Full-Text Access

Full-text Article (Complimentary)


Ball, Laurence
Mankiw, N. Gregory


View Comments on This Article (0) | Login to post a comment

Journal of Economic Perspectives

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


JEP - All Issues

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us