Monetary policy impact on the labor market equilibrium: Countries of the pacific alliance,Impacto de la política monetaria en el equilibrio del mercado de trabajo: Países de la alianza del pacífico1

This paper analyzes the impact of monetary policy on the Non-Accelerating Inflation Rate of Unemployment (NAIRU), or equilibrium of the labor markets, for the countries that belongs to the Pacific Alliance (Chile, Colombia, Peru and Mexico). The NAIRU movements are estimated for each country. Furthermore, Auto-Regressive Vector Models are used to evaluate the impact of monetary policy on the labor market of each of the PA countries. Results show that monetary policy impacts the NAIRU of Chile, Colombia and Peru. However, monetary policy shocks have not significant impact on the NAIRU of Mexico. Keywords: Labor market, Unemployment, Inflation, Monetary Policy, VAR models. © 2020 Catholic University of Colombia. All rights reserved.