The two-equation method proves to be successful. It does indeed yield more precise estimates of the NAIRU. However, the effects we investigate pertain to changes in parameters and not to their levels, and in this regard the precision of our estimates is still wanting. Nevertheless, our results do generally support the claims of supporters of IT, albeit rarely to a statistically significant degree.The remainder of the paper unfolds as follows. Section 2 reviews current knowledge on the effects of IT. Section 3 lays out our theoretical model. Section 4 explains our econometric approach and discusses data problems. Section 5 gives an overview of current estimates of the NAIRU in Switzerland. Section 6 presents our results, and Section 7 summarizes our findings and concludes.