NAIBER
In economics, non-accelerating inflation buffer employment ratio (NAIBER) refers to a systemic proposal for an in-built inflation control mechanism devised by economists
Description
If the
The buffer employment ratio (BER) is the ratio of job guarantee employment to total employment. The BER conditions the overall rate of wage demands. When the BER is high, real wage demands will be correspondingly lower. If inflation exceeds the government's announced target, tighter fiscal and monetary policy would be triggered to increase the BER, which entails workers transferring from the inflating sector to the fixed price job guarantee sector. Ultimately, this reduces the inflation spiral.[citation needed] So instead of a buffer stock of unemployed being used to discipline the distributional struggle, the job guarantee policy achieves this via compositional shifts in employment. Replacing the current non-accelerating inflation rate of unemployment (NAIRU), the BER that results in stable inflation is called the non-accelerating inflation buffer employment ratio (NAIBER). It is a full employment steady state level, which is dependent on a range of factors, such as the path of the economy.[7]
See also
- Centre of Full Employment and Equity
- Full Employment Abandoned
- Job Guarantee
- Employer of last resort
- Involuntary unemployment
- Natural rate of unemployment
Footnotes
- ^ W.F. Mitchell (1998) "The Buffer Stock Employment Model - Full Employment without a NAIRU" Journal of Economic Issues 32(2), 547-55
- ^ W.B. Mosler (1997-98) "Full Employment and Price Stability" Journal of Post Keynesian Economics, 20(2), 167-182
- ^ L. Randall Wray, "Job Guarantee"
- ^ Phil Lawn: “Globalisation, Economic Transition and the Environment -Forging a Path to Sustainable Development”, Edward Elgar Publishing, 2013
- ^ Ball, Laurence (2009), Hysteresis in Unemployment: Old and New Evidence (PDF)
- ISBN 978-1-85898-507-7
- ^ W.F. Mitchell and J. Muysken (2008). Full Employment Abandoned: Shifting Sands and Policy failures Archived 2015-02-22 at the Wayback Machine,. Edward Elgar: Cheltenham. Revised: January 2009 [1] Archived 2011-07-24 at the Wayback Machine
References
- Febrero, Eladio (2009), "Three difficulties with neo-chartalism" (PDF), Journal of Post Keynesian Economics, 31 (3): 523–541, S2CID 154990728
- Lerner, Abba P. (1947), "Money as a Creature of the State", American Economic Review
- Minsky, H.P. (1965), The Role of Employment Policy, in M.S. Gordon (ed.), Poverty in America, San Francisco, CA: Chandler Publishing Company.
{{citation}}: CS1 maint: postscript (link) - Mitchell, Bill (2009), The fundamental principles of modern monetary economicsin "It’s Hard Being a Bear (Part Six)? Good Alternative Theory?" (PDF)
{{citation}}: External link in|postscript= - Wray, L. Randall (2000), The Neo-Chartalist Approach to Money, UMKC Center for Full Employment and Price Stability
- Wray, L. Randall (2001), The Endogenous Money Approach, UMKC Center for Full Employment and Price Stability
- Wray, L. Randall (December 2010), Money, Levy Economics Institute of Bard College