Shocks and Irish Business Cycles , 1922 - 1979
نویسنده
چکیده
In this paper I estimate a SVAR model to study the transmission of UK shocks to the Irish economy over the period 1922-1979, using annual time series for CPI inflation and output growth. UK aggregate demand and supply shocks have large and significant impacts on Irish inflation, but smaller impacts on Irish real GDP growth. A historical decomposition indicates that UK aggregate demand shocks played a more important role than domestic shocks in the evolution of Irish inflation. In contrast, the evolution of Irish real GDP is driven by idiosyncratic domestic aggregate supply and demand shocks than by UK shocks.
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