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But this is actually more embarrasing (if people understand it).

NAIRU is the level of unemployment necessary to prevent inflation. NAWRU is the level of unemployment necessary to prevent wage increases. Of course that is largely how NAIRU has been treated anyway, this just cuts down one step of obfuscation and spells it right out: the unemployment is there intentionally to prevent those employed daring to ask for a raise.

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by A swedish kind of death on Tue Oct 15th, 2013 at 05:13:12 PM EST
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