But, of course, additional shocks almost always directly affect inflation, most often on the supply side of the economy. One, therefore, must take into account both the demand pressures captured by the relationship between the unemployment rate and the NAIRU and supply shocks. Alternatively, one could derive an alternative measure of the NAIRU that took into account the supply shocks.
Judging from the language and the tone of the outrage and condemnation of bankers, it is a wonder that no bankers have yet been attacked by lynch mobs.