#nairu — Public Fediverse posts

#RichardDenniss from the #AustralianInstitute talks about the RBA and its role in our economy in plain language that everyone will understand. It cannot be said often enough that the RBA’s obsession with controling inflation is a two-edged sword which, if you listen to Denniss, hurts the most vulnerable in our society and about a third of Australians who rent (because landlords put up their rents when mortgage rates go up) and another third of Australians because their own morgage rates also go up. On top of that, fighting inflation also causes higher unemployment. Denniss does a good job explaining all of that here, have a listen:

https://omny.fm/shows/whats-the-point-with-richard-denniss/whats-the-point-of-the-reserve-bank-of-australia

Another conversation could be had about whether the RBA should be independent of govt (Finance and Treasury) given that the govt is the only authority for issueing and removing currency.

#Inflation #RBA #NAIRU #Unemployment #ProfitLedInflation #Banking #CashRate #TaxReform #TaxSuperProfits #TaxTheRich #MMT #NeoLiberalEconomics

More on Employment from the RBA:
https://www.rba.gov.au/publications/bulletin/2024/apr/pdf/assessing-full-employment-in-australia.pdf

Le taux de chômage n'accélérant pas l’inflation. (2017)
https://informassue.eu.org/pages/democratie_election.php?art=inflation_chomage
les pouvoirs en place ne cherchent pas à réduire le #chômage, ils adaptent le taux de chômage pour maintenir un taux d'#inflation stable.

Illustration Miss Lilou
https://dessinsmisslilou.over-blog.com/2017/12/de-l-utilite-economique-et-sociale-du-chomeur.html

#NAIRU #Emploi #Économie #Social #Politique #Société #Salarié #Salaire #Travailleurs #Emploi

Pluralistic: The enshittification of labor (07 Nov 2025)

https://web.brid.gy/r/https://pluralistic.net/2025/11/07/postwar-social-contract/

Ross Gittins expands on my argument against #NAIRU #auspol #econtwitter https://www.smh.com.au/business/the-economy/what-s-kept-us-from-full-employment-is-a-bad-idea-that-won-t-die-20230924-p5e74p.html

At least rhetorically, it looks as if the Employment White Paper may dump the #NAIRU definition of full employment. But sounds like there will be no real policy. $61 million (apparently over five years) is trivial

https://www.theguardian.com/business/2023/sep/25/albanese-government-employment-white-paper-tafe-centres-of-excellence-higher-apprenticeships

I've been making this point a lot recently, thinking it was original, but @delong posted it more than a year ago. The accelerationist model of inflation from which the NAIRU is derived works only for the 1970s.

Earlier inflations in the 1950s, and the current #inflation don't fit the model at all well, in either US or Australia.

Pre-NAIRU Keynesian understanding of the Phillips curve saw strong aggregate demand as driving both lower unemployment and higher inflation.
In #NAIRU model, transmission mechanism is from (low) unemployment to wages to prices.

https://open.substack.com/pub/braddelong/p/hoisted-from-e-archives-six-episodes?r=254ji5&utm_campaign=post&utm_medium=email

#econtwitter

Appointment of Bullock as RBA Governor reaffirms #Labor's commitment to #NAIRU model, inlcuding need for unemployment above NAIRU to keep inflation down.
Labor has abandoned Full Employment, or redefined it out of existence. #econtwitter

But #RMITFactlab declined to list Albanese's commitment to a Full Employment Summit and White Paper as a promise, let alone assess whether it has been broken.

@dellway
Work more Phil?

What is the current #NAIRU (Non-accelerating inflation rate of unemployment is a theoretical level of unemployment below which inflation would be expected to rise. - WP) Phil?

It is above the current unemployment rate isn't it Phil.
And you are trying to increase unemployment cause you think that will help prevent inflation hey Phil.

Throw more folk under the bus, for the good of your economy, and preach, "Work more".
#EatCake #AusPol #Unemployment #Economics

@AnOldGuy
Journalists need to get wise to the dirty little secret of the Reserve Bank and ask, "How much of this rate rise is due to the Reserve's decision to raise unemployment?"

Unbelievable. But standard economics.

#NAIRU hashtag will get you to the interview with Peter Tulip.
#AusPol