nairu

or NAI·RU

[ ney-roo ]

noun

, Economics.

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

NAIRU

/ ˈnaɪruː /

acronym for

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

Word History and Origins

Origin of nairu¹

First recorded in 1975–80; acronym

Example Sentences

If the jobless rate falls below NAIRU, the labor market gets too hot and inflation accelerates.

From Slate

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

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

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