Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

Listen for a second. Let’s just listen to what the former Governor of the Reserve Bank had to say about the proposition that was put by the shadow Treasurer yesterday. He said:

I do not think it is a particularly useful construct. I do not think I have ever heard it mentioned in the Reserve Bank boardroom.

The NAIRU has never been mentioned in the Reserve Bank boardroom. And there is a reason for that: it is not used in practical economics.

See this speech in context