NAIRU
/ˈnʌɪruː/(also Nairu) Economics
noun
A rate of unemployment at which the labour market creates no inflationary pressure.
- If unemployment falls below this rate (which will vary in relation to the underlying rate of economic growth), the increase in wages and spending tend to lead to a rise in inflation..
Origin
1970s. Acronym from the initial letters of Non-Accelerating Inflation Rate of Unemployment.