The NRU will once again start to rise invisibly behind the scenes. As usual, this will catch the authorities unawares. From the 1950s to 1970s, politicians and officialdom failed to appreciate that the NRU (or U*) was steadily rising, ushering in decades of rising inflationary pressures. From the late 1980s until very recently, they similarly failed to appreciate the reverse trends, leading to decades of deflationary pressure.
