Some policy makers view the concept of NAIRU, the non-accelerating inflation rate of unemployment, as consistent with an equilibrium unemployment rate. Although it is often associated with full unemployment, the NAIRU is not zero because even in equilibrium, an adjusting economy experiences some unemployment due to natural turnover and job-seeking.
Suggested citation: “Regional NAIRU,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-01, pp. 14, 01.01.1997.