Definition of NAIRU in English:

NAIRU

(also Nairu)

Pronunciation /ˈnʌɪruː/

noun

Economics
  • A rate of unemployment at which the labour market creates no inflationary pressure.

    If unemployment falls below this rate (which will vary in relation to the underlying rate of economic growth), the increase in wages and spending tend to lead to a rise in inflation.

Origin

1970s. Acronym from the initial letters of Non-Accelerating Inflation Rate of Unemployment.