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How can Monetary Policy Affect the Economic Activity?

The aim of this paper is to measure the persistence of monetary shocks on sectoral and aggregrates output. The study is in line with Pesaran, Pierce and Lee's (1993) multisectoral model. After presenting this approach, we will analyze the consequences of sectoral and aggregrate shocks on the GDP through a restricted VAR and Bayesian VAR.
 

WP1998-16.pdf