The Natural Rate of Unemployment

The so-called natural rate of unemployment this is a Friedmanite innovation that becomes I would say more normalized and mainstream than monetarism. The idea is that there's a level of unemployment below which the economy cannot go without suffering damage and one form that damage will take is inflation. In the 90s Janet Yellen who is then you know she's now the Secretary of the Treasury before that she was Jerome Powell's predecessor as head of the Federal Reserve. And in the mid 90s as unemployment approaches 5% Jellen like Yellen personally visits Greenspan in his office and says that they need to raise rates because like the economy is headed for 5%.