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Therefore, the goal of economic policy in modern economies is to reduce unemployment and thereby to avoid the rising inflationary pressures.
In achieving this goal, the concept of Non - Accelerating Inflation Rate of Unemployment (NAIRU) and policy recommendations arising from this concept are of great importance.
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NAIRU can be defined under the different inflation rates, and at different rates of unemployment, and it responds to those conditions in the economy which allow stable rate of inflation.
In contrast to the NRU, which implies that all markets are in equilibrium, NAIRU points out that not all markets have to be in balance.The conclusion also suggests the existence of the impact of actual unemployment rate on the NAIRU, which may be affected by the change in aggregate demand.Keywords: hysteresis, NAIRU, Kalman filter, inflation, unemployment. Introduction Prague Economic Papers DOI: /526 Accepted: Published: Unemployment is a major problem, both in developed market economies, and countries that have gone through the transitional changes.This approach emphasizes that the NAIRU is a result of these factors, which influence the wage increase and which in recent decades are often cited as the cause of rising unemployment in European countries.The exogenous approach finds the solution to this problem in labour market deregulation and unemployment benefits reduction (Sørensen & Whitta-Jacobsen, 2010, p. According to the endogenous approach, the NAIRU is determined by the level of the actual unemployment rate, which is the basis of hysteresis theory (Blanchard and Summers, 1988).After one line space comes the abstract in English (600–800 characters) and a list of key words (5–10) in English. Graphs, figures, charts are included in the body of the article and count in its total volume. Bibliography comes after the text as a numbered list, in alphabetical order, one item per number. Authors from the Czech Republic are published for free.For the Russian people the cost publication is 250 rubles per 1 complete (incomplete) page, if necessary, translating the abstract and keywords in English – 200 rubles (a printed copy – an additional 500 rubles).The methodical articles should indicate discipline and specialization of students for which these materials are developed.After a blank line the name of the article in English is printed.This is in accordance with the BOAI definition of open access.All the materials of the journal are available under Creative Commons “Attribution” 4.0 license . The articles sent to the editorial staff are subject to review by independent experts.