This paper derives alternative measures of the short-run NAIRU (SRN) for the UK, the rate for unemployment at which inflation will neither increase nor decrease in the short-run. We estimate the NAIRU jointly with price equations by using the Kalman filter. Our work suggests that both structural...

This article discusses how globalisation may influence the way inflation moves over the business cycle in the United Kingdom. Globalisation may do this by affecting how costs respond to changes in economic activity in the United Kingdom or by affecting how inflation responds to changes in costs....