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MENTAL MODEL · M6231

NAIRU

NAIRU
BusinessHigh supportMacroeconomics
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Version 1.0.0 · Updated 2026-07-28

CORE DEFINITION

The non-accelerating inflation rate of unemployment (NAIRU) is the theoretical lowest unemployment rate at which inflation does not rise; once the unemployment rate falls below it, inflation begins to accelerate. Its predecessor theory is the NIRU (non-inflationary rate of unemployment), proposed by Franco Modigliani and Lucas Papademos in 1975, which refined the concept of the natural rate of unemployment previously proposed by Milton Friedman. Monetary policy based on the NAIRU theory generally aims to keep the unemployment rate in the economy at a level where price increases just do not exceed the government's inflation target, allowing prices to grow slowly and steadily while keeping unemployment at an acceptable level.

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The non-accelerating inflation rate of unemployment (NAIRU) is the theoretical lowest unemployment rate at which inflation does not rise; once the unemployment rate falls below it, inflation begins to accelerate.

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The non-accelerating inflation rate of unemployment (NAIRU) refers to the lowest unemployment rate achievable without pushing up inflation; below it, inflation accelerates, and above it, inflation slows.

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Source support: Explicit

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    zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E9%9D%9E%E5%8A%A0%E9%80%9F%E9%80%9A%E8%B4%A7%E8%86%A8%E8%83%80%E5%A4%B1%E4%B8%9A%E7%8E%87ZH · Explicit
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