Local Projections (LP) is a popular methodology for the estimation of Impulse Responses (IR). Compared to the … traditional VAR approach, LP allow for more flexible IR estimation by imposing weaker assumptions on the dynamics of the data. The … this work we propose an IR estimation methodology based on B-spline smoothing called Smooth Local Projections (SLP). The …

financial shocks generate effects on the economy that increase more than proportionately in the size of the shock when the shock … is negative, but not when the shock is positive …

level clearly. A positive information shock which also induces increases in interest rate is perceived by private agents as …

shocks and study their effects on financial variables and macro variables. The first shock resembles a conventional monetary … policy shock, and the second resembles an unconventional monetary shock. The third shock leads to an increase in interest … and uncertainty decrease, and the U.S. dollar depreciates. Therefore, this third shock combines all the characteristics of …