New Study Reveals Key to Balancing Inflation and Unemployment in Germany
The article estimates the NAIRU for Germany by analyzing the relationship between inflation and unemployment. To do this, the researchers consider a changing inflation trend and adjust for the impact of non-cyclical inflation. They also account for variations in the volatility of unemployment and inflation shocks. By using a specific method, they are able to identify the coefficients in the Phillips curve more accurately, leading to a better understanding of the NAIRU.