Although economic squabbling is fun to follow, a lot of it is the result of the use of fuzzy language. As a result, there is no way of advancing the conversation; arguments are just people clinging to different definitions. The use of mathematics in economics is supposed to eliminate this squabbling; unfortunately, the mathematical models themselves rarely fit reality. However, we need to translate the debates into operational discussions, to see whether they can be applied to the real world. If we turn to my previous article about NAIRU, we need to ask ourselves -- does the definition of NAIRU we are using pass the Santa Claus test?Bond Economics
NAIRU And The Santa Claus Test
Brian Romanchuk
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