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We assess the macroeconomic impact of pandemic-related monetary policy measures of the ECB. Conditioning on counterfactual interest rate paths that would have materialised in the absence of the policies, the macroeconomic effects are measured using structural vector autoregressions. In the...
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non-Gaussian SVAR framework which minimizes the risk of distributional misspecification. We employ narrative sign … restrictions to label the asset price shock and leverage the property of the Bayesian approach to compute the posterior probability … of each shock satisfying these proposed restrictions. The structural shock associated with wealth has a positive impact …
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