tag:blogger.com,1999:blog-2277215496195926573.post6788233866833680354..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: A bit more NAIRU basher bashing.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-65406005625628740022017-03-13T01:08:55.076-07:002017-03-13T01:08:55.076-07:00Taking your points in turn, I've never been mu...Taking your points in turn, I've never been much concerned about the difference between the so called natural rate and NAIRU. Looks like Roger Farmer isn't either.<br /><br />Re "continue to increase", I can see the logic there. If aggregate demand is excessive, employers will bid up the price of labour and other inputs so as to ensure a continued supply thereof. But if ALL employers do that, that gets each individual employer nowhere. So each employer ups the price again, so as to out-bid other employers. That means a continuously rising rate of inflation.<br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-22232092516228259922017-03-12T18:17:11.301-07:002017-03-12T18:17:11.301-07:00But why NAIRU and not a natural rate, and why must...But why NAIRU and not a natural rate, and why must inflation continue to increase below NAIRU? Why accelerating, and not a one-off increase in the rate of inflation?Damnhttps://www.blogger.com/profile/04321441179372245369noreply@blogger.com