Achieving full employment along with price stability
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Introduction
Full Employment under an MMT framework is zero underemployment and only frictional unemployment.
NAIRU is a buffer stock of unemployed to keep the inflation rate at an arbitrary level. NAIBER is a buffer stock of employed people to keep the inflation rate at a consistent level.
- Employer of last resort - Job Guarantee as price anchor
- Employment assurance v. employment insurance
References
Pavlina R. Tcherneva, Fiscal Policy Effectiveness: Lessons from the Great Recession
