Recent Behavior of Output, Unemployment, Wages and Prices in Colombia:What went Wrong?

Luis Arango Thomas, Ana Iregui and Luis Melo-Velandia

Borradores de Economia from Banco de la Republica de Colombia

Abstract: At the end of the last decade, the real activity in Colombia underwent the sharpest recession of the last fifty years. We postulate a non-triangular structural VAR model(Amisano and Giannini, 1997) to describe the dynamics of output, prices, unemployment and wages during the last two decades. The evidence suggests that, in the long-run, monetary policy has been neutral to both output and unemployment while the main reasons for the increase in the latter have been the lack of credibility of monetary policy, the way in which wages are set and the increase in non-wage labor costs.

Keywords: Structural VAR; unemployment; monetary policy; wages; expectations (search for similar items in EconPapers)
JEL-codes: C40 E24 (search for similar items in EconPapers)
Date: 2003-06
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.32468/be.249 (application/pdf)

Related works:
Working Paper: Recent Behavior of Outpout, Unemployment, Wages and Prices in Colombia: What went wrong? (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:249

Access Statistics for this paper

More papers in Borradores de Economia from Banco de la Republica de Colombia Cra 7 # 14-78. Contact information at EDIRC.
Bibliographic data for series maintained by Clorith Angélica Bahos Olivera (cbahosol@banrep.gov.co).