[3][4] If the Phillips curve displays hysteresis—that is, if episodes of high unemployment raise the NAIRU—the NAIRU analysis is especially problematic.
This theory, and the policy of the job guarantee replaces the NAIRU with the NAIBER (non-accelerating inflation buffer employment ratio).
If inflation exceeds the government's announced target, tighter fiscal and monetary policy would be triggered to increase the BER, which entails workers transferring from the inflating sector to the fixed price job guarantee sector.
[citation needed] So instead of a buffer stock of unemployed being used to discipline the distributional struggle, the job guarantee policy achieves this via compositional shifts in employment.
It is a full employment steady state level, which is dependent on a range of factors, such as the path of the economy.