This paper develops a panel unobserved components model of the monetary transmission mechanism in the world economy, disaggregated into its fifteen largest national economies. This structural macroeconometric model features extensive linkages between the real and financial sectors, both within...

Contents -- I. INTRODUCTION -- II. EVALUATING MISALIGNMENT ASSESSMENTS FOR ADVANCED ECONOMIES -- III. CROSS-SECTION ANALYSIS OF THE FALL 2006 CGER ESTIMATES -- IV. CONCLUSION -- REFERENCES -- Appendix I. Pooled Regression Results -- Appendix II. Description of Diagnostic Statistics -- Appendix...