Changing NAIRU estimates reshape Australian inflation analysis over three decades.
The article discusses how the relationship between inflation and unemployment in Australia has changed over the past forty years. Researchers looked at how inflation and unemployment affect each other in the short and long term, and how the level of unemployment that keeps inflation stable has shifted. They found that factors like import prices and 'speed-limit' effects play a role in this relationship. The study also shows how the understanding of inflation has evolved within the Reserve Bank of Australia.