is constructed for the German monetary sector based on M3, GNP, an inflation rate, a long-term interest rate and a short …-term rate which represents the policy variable of the DBB. Moreover, import price inflation is included as an exogenous variable …

with simulations. Two examples based on European unemployment and inflation series are used to illustrate the virtue of the …

In order to identify structural shocks that affect economic variables, restrictions need to be imposed on the …

restrictions for the structural shocks and also use (conditional) heteroskedasticity in the residuals for identification purposes … policy shocks which is consistent with the second order moment structure of the variables. The model indicates that … contractionary monetary policy shocks lead to a long-lasting down-turn of real stock prices. …