investigate whether employing the narrative monetary shock account as a proxy variable in a VAR model aligns both shock series. We …

, characterise somehow the monetary policy shock and then plot impulse responses. In this paper I attempt to do this exercise with …’ strategy applied recently by several authors. I also propose another approach, namely, imposing restrictions on implied shock ….1-0.15% lower consumer prices; (4) the impact on prices is slower than on output; it reaches its bottom 4-6 years after the shock …

policy analysis. It suggests that the best method of solving the puzzle implies a close connection between theory and …

Following a contractionary monetary policy shock, the aggregate output decreases over time for six to eight quarters …