Department of Economics. University of Melbourne. Parkville Victoria 3052 Australia
ABSTRACT
In this paper we investigate the relationship between inflation and
unemployment in Australia, post 1959. We focus on two features of the data:
firstly, we find that forecasting models are surprisingly stable through
our sample period. We also estimate the nonaccelerating inflation rate
of unemployment (NAIRU), focussing on both the level of the NAIRU, and
the stability and precision of our estimates. We find that estimates of
the NAIRU range from as low as 2.3% to as high as 9.5% in Australia over
this period.
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