zaky
Dear all,
Following a shock of 1% on the monetary base the output increses by 0.15% after six months. The data sample I used span the period between 1999 and 2006 (monthly data). During this period the central bank increased dramatically the monetary base. The MB increased by 20%, 25%, 100% and so on. My question is: Can I consider this series of increases in MB as shocks and say that following a shock of 100% output increses by 15% after six months?
I think that impulse response functions mean that at any time a shock of 1% on MB, regardless the level of the MB, results in an increase in output by 0,15%.
I need to be sure.
All the best,
Following a shock of 1% on the monetary base the output increses by 0.15% after six months. The data sample I used span the period between 1999 and 2006 (monthly data). During this period the central bank increased dramatically the monetary base. The MB increased by 20%, 25%, 100% and so on. My question is: Can I consider this series of increases in MB as shocks and say that following a shock of 100% output increses by 15% after six months?
I think that impulse response functions mean that at any time a shock of 1% on MB, regardless the level of the MB, results in an increase in output by 0,15%.
I need to be sure.
All the best,