An article in the Wall Street Journal had the headline Nobody Knows Nairu, and Thats a Problem

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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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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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