I have a question regarding a specific equation. I want to calculate the effects of monetary policy on GDP growth and obtain an IRF as a result. However, I'm not sure how to proceed. I would greatly appreciate any assistance.
The logic of the data is like this:
Column A: This column represents the month and year when monetary policy adjustments occurred. The data span quarterly intervals from March 2001 to December 2020, resulting in a total of 80 observations.
Column B: This is the real interest rate.
Column C: Represents the expected interest rate.
Column D: Showcases the difference between the real interest rate and the expected interest rate. This difference is commonly referred to as the "monetary policy shock."
Column E: Provides the year corresponding to the GDP data.
Column F: Details the quarter of each year.
Column G: Indicates the GDP in terms of million francs.
Column H: Demonstrates the growth rate of the GDP.
where yt represents the relevant macro variable (for example, real output or
prices), S is the measure of monetary policy shocks.
The logic of the data is like this:
Column A: This column represents the month and year when monetary policy adjustments occurred. The data span quarterly intervals from March 2001 to December 2020, resulting in a total of 80 observations.
Column B: This is the real interest rate.
Column C: Represents the expected interest rate.
Column D: Showcases the difference between the real interest rate and the expected interest rate. This difference is commonly referred to as the "monetary policy shock."
Column E: Provides the year corresponding to the GDP data.
Column F: Details the quarter of each year.
Column G: Indicates the GDP in terms of million francs.
Column H: Demonstrates the growth rate of the GDP.
where yt represents the relevant macro variable (for example, real output or
prices), S is the measure of monetary policy shocks.
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