Non Accelerating Inflation Rate of Unemployment (NAIRU): An estimation for the Brazilian economy between 2000 and 2013

Abstract:

In this paper we develop estimates for the Non-Accelerating Inflation Rate of Unemployment (NAIRU) for the Brazilian economy. The data used are quarterly for the period between 2000Q1 and 2013Q2. For the unemployment rate we used DIEESE's data, and for the inflation rate data from IBGE (National Consumer Price Index - INPC). The model was estimated based on a transfer equation. The central results are that there was a shift in the correlation coefficient between unemployment and inflation, from positive to negative, with the NAIRU remained above the unemployment rate on the period analysed.

Keywords:
unemployment rate; inflation rate; correlation coefficient; NAIRU