An estimate of the range of equilibrium rates of unemployment for Australia

This paper estimates the range of equilibrium rates of unemployment for Aus tralia. The estimation technique nests a unique equilibrium rate of unemplo yment as a special case. It is found for the period 1965-97 that a range of equilibria of at least 6.6 percentage points of unemployment exists in Aus tralia. The lower limit of this range. which is the minimum rate of unemplo yment consistent with non-increasing inflation. was 2-3 per cent in the 196 0s, jumped in the early 1970s and was about 5.6 per cent during the 1990s.