Measuring The UK Short-Run NAIRU

Nicoletta Batini and Jennifer Greenslade ()

No 12, Discussion Papers from Monetary Policy Committee Unit, Bank of England

Abstract: This paper derives alternative measures of the short-run NAIRU (SRN) for the UK, the rate for unemployment at which inflation will neither increase nor decrease in the short-run. We estimate the NAIRU jointly with price equations by using the Kalman filter. Our work suggests that both structural changes in the labour market and favourable supply shocks may have had a beneficial impact on RPIX inflation over the last few years. We show that deviations of unemployment from the short-run NAIRU measures prove helpful in predicting inflation and we demonstrate their usefulness in Taylor-type policy rules for the interest rate.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.bankofengland.co.uk/publications/extern ... /extmpcpaper0012.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.bankofengland.co.uk/publications/externalmpcpapers/extmpcpaper0012.pdf [301 Moved Permanently]--> https://www.bankofengland.co.uk/publications/externalmpcpapers/extmpcpaper0012.pdf)

Related works:
Journal Article: Measuring the UK short-run NAIRU (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mpc:wpaper:12

Access Statistics for this paper

More papers in Discussion Papers from Monetary Policy Committee Unit, Bank of England Contact information at EDIRC.
Bibliographic data for series maintained by Bank of England Website ().