Genuinely this is such a great video explaining the NAIRU!! I've been confused about this since Year 11 and have my Year 12 Eco trial in three days time! Really a great help, thank you so much.
@mrsymonds4 жыл бұрын
Great to hear! Hopefully the NAIRU knowledge came in handy.
@imokam_2577 Жыл бұрын
Before you I watched two video on NAIRU but didn't learnt but you cleared it so clearly, I love the way you make content so simple:)
@kennyboyy11 ай бұрын
This video has been SO HELPFUL! I'm studying for my CPA exam and NAIRU has been a difficult concept to grasp with all the wording.
@nholmstrup4073 жыл бұрын
This is amazing! Thank you. My teacher has been talking about the NAIRU graph for weeks now and I just didnt understand what he was on about.
@mrsymonds3 жыл бұрын
No worries! The NAIRU, such a challenging concept. I'm glad to be of help here.
@pinayxindia58832 жыл бұрын
Stop crying for PhD again and again !!!!! you are the best for us. we also don't want PHD. the best thing is that you properly explained the reason behind Nairu so you are the best. Love you from India 🇮🇳.
@mrsymonds Жыл бұрын
I'm just happy to help out. NAIRU is wicked complicated. Glad to hear it was useful
@nptmg90723 жыл бұрын
Thank you, this helped me during my CFA prep
@mrsymonds3 жыл бұрын
I hope the exams went well!
@detectiveofmoneypolitics Жыл бұрын
Economic investigator Frank G Melbourne Australia 🇦🇺 still watching this very informative content cheers Frank
@mykashmirtraveldiaries6872 жыл бұрын
Thank you so much... watching this concept half an hour before exams ....🤍♥️
@mrsymonds Жыл бұрын
I hope it helped!
@dong86222 жыл бұрын
Mr symonds you’re my hero
@mrsymonds2 жыл бұрын
This comment is BEST. Thanks for watching
@TheNinjaDwarfBiker2 жыл бұрын
Taking a macro course as an elective and my university failed to make me understand this concept in 75 mins while you did in 2 mins, congrats
@mrsymonds2 жыл бұрын
This is such a great comment. I accept your congrats with thanks
@zutshi75835 жыл бұрын
I was really confused how low unemployment rate can cause cost-push inflation . Thank you!
@mrsymonds5 жыл бұрын
Hi Akash -- thanks for the question. This is what I think you mean -- let me know if this is what you're talking about. If there is a low unemployment rate, and companies need extra workers, then these companies will have to offer workers who currently have jobs HIGHER WAGES. By doing this, they can POACH workers from their current jobs and lure them to their firms. BUT! By increasing wages, this will lead to firms pushing up prices for consumers (because firms won't absorb the extra costs)...higher prices will equal higher inflation. The cost-push part: higher wages will increase the COSTS of production...hence, cost-push inflation. Hope this helps.
@jirensama16224 жыл бұрын
@@mrsymonds omgg thanks a lot !
@naomilezpona1336 Жыл бұрын
@@mrsymonds BUT we CAN have full employment with price stability! We don't need to have this "trade-off"
@nayyyy272 жыл бұрын
So when there is a hysteresis-nairu would increase right cause it may happen that labour become demotivated or lose their skills after a recession therefore changes in economic condition actually affect Nauru...correct me if I'm wrong!!
@tias91813 жыл бұрын
Thank you loads, my HSC is coming up in a few weeks, needed this. Although I have a question; I just need to clarify if the economy is above the NAIRU it is considered "bad" whereas if its at NAIRU its considered "good" ?
@mrsymonds3 жыл бұрын
Hi! GREAT question. I think it depends on what the govt's trying to do. At the NAIRU, it's 'good' because there's no cyclical UE. However, it's going to be hard to reduce the NAIRU further. Above the NAIRU, it's 'bad' because there's cyclical UE but that could be solved with some expansionary macro policies. So, as with many eco things, it depends.
@shweta88952 жыл бұрын
Wow.. Thank you
@mrsymonds2 жыл бұрын
You're very welcome. Tx for watching
@user-ls4be2yp5j4 жыл бұрын
really helpful! it's easy to understand. thank you!
@mrsymonds4 жыл бұрын
That's terrific to hear. Thanks so much for watching. Happy I could help
@jessyleong47405 жыл бұрын
was really helpful ! Thank you!
@mrsymonds5 жыл бұрын
Good to hear! Not an easy concept at all.
@erickrajan74014 жыл бұрын
I understand this is all that's needed for the hsc - but I have a real craving to understand things. If NAIRU means infaltion doesn't change - how is it that when we operate below Nairu inflation doesn't keep rising
@beerus5534 жыл бұрын
Marks in the Bag
@mrsymonds4 жыл бұрын
Do you mean in general or right now? Usually, if the economy is at or below NAIRU, and a govt tries to reduce UE further through macro policy, this will likely be inflationary. NAIRU doesn't necessarily mean inflation doesn't change; it's more about giving you clues about what the consequences of different policies could be.
@teekak79494 жыл бұрын
Great video, thanks!
@mrsymonds4 жыл бұрын
No problems! It's such a tricky concept.
@thanasekaran18305 жыл бұрын
Very very helpful thanks a lot sir
@mrsymonds5 жыл бұрын
Excellent news! Thanks for sharing and glad to help.
@yougkg5 жыл бұрын
Very helpful one! Thanks! 👍🏻
@mrsymonds5 жыл бұрын
No problems -- glad it helps! Not an easy concept.
@sikharanidevi28824 жыл бұрын
It is really helpful thank you sir ☺️
@mrsymonds4 жыл бұрын
You're very welcome. Glad to help.
@nwgverified5 жыл бұрын
I'm confused in you video your definition of the NAIRU is where cyclical unemployment is 0 or full employment but I thought that was the NRU. Isn't the NAIRU more about it being the point where inflation accelerates?
@mrsymonds5 жыл бұрын
Thanks for the comment. I can see your point. I've really tried to simplify the comment to the level that's required for the NSW HSC. Technically, the natural rate and NAIRU are different. For our purposes, at the high school level, I find it's sufficient to understand that if we're above the NAIRU, cyclical UE occurs, so the govt can just use expansionary macro policy to grow the economy and reduce inflation...if we're at the NAIRU and below, if we do the same, we'll just inflation. You'll go into MUCH more detail if you follow this through to uni!
@nwgverified5 жыл бұрын
@@mrsymonds Yeah, ok that makes sense. Thanks very much :D
@mrsymonds5 жыл бұрын
@@nwgverified No worries. Thanks for watching.
@BenGesus2 жыл бұрын
bihh ahhh nighhh
@VidushiHemrage5 жыл бұрын
Hello! Is the natural rate of unemployment (NRU) the same as the non-accelerating inflation rate of unemployment (NAIRU)?
@mrsymonds5 жыл бұрын
Hi! That's a great question. It's tricky. At the higher levels, economists will tell you there are major differences between the NRU and the NAIRU. Where I teach, in Australia, at the high school level, we focus on the NAIRU and it is SIMILAR (but not the same) as the NRU. Hopefully this helps! Thanks for watching.
@VidushiHemrage5 жыл бұрын
@@mrsymonds thank you!
@mrsymonds5 жыл бұрын
@@VidushiHemrage You're very welcome.
@lowkaiyang93103 жыл бұрын
Hi can I ask what's the difference between NAIRU and NRU ?
@mrsymonds3 жыл бұрын
Good question. For the NSW HSC Eco course, nothing. If you go on to study Eco at university, there are lots of differences and it can get quite complex. For ease, and based on the course I teach, I stick to the NAIRU.
@adrianomeis1845 жыл бұрын
I think that NAIRU has definitely killed Italian industry. But not the specific concept, rather the way of thinking, the degenerative philosophy behind that acronym. Literally NAIRU means: how many lives are you ready to sacrifice in the noun of price stability, inflation, public debt and so on... there is nothing more cruel
@mrsymonds5 жыл бұрын
Hey Adriano..nice to see some passion when people are talking about economics! This is a challenging part of the subject -- the trade off between economic growth and economic development; between boosting production and taking care of the citizens. It's complex.
@mischaherman69163 жыл бұрын
The concept of NAIRU is cruel. Condemning a percentage of the population to who want to work, to the unemployment queues simple to stave off the threat of inflation. Ask your selves this, what is the market bid for the long term unemployed???? $0. By definition, no one wants to hire them. If the federal government offered a voluntary Job Guarantee at a fixed price to anyone who wants to work, this would be a productive, non-inflationary use of these idle resources, as the price is fixed by the government and its not competing for labour already in use by the private sector. Mr. Symonds, its a great educational video, but this idea belongs in the bin (not your fault obviously). For those interested in learning more about this school of thinking, here is a place to start: theconversation.com/explainer-what-is-modern-monetary-theory-72095 Good luck with your HSCs!
@zackkier62572 жыл бұрын
Me realizing that this is bs and is litterally against “trickle down” economics whatever that is.