Estimating the effect of […] shock on the real GDP, interest rate, and inflation in […].
Coursework description: using 3-equation model (IS, Philip’s curve, and monetary rule), you have to analyze the effects of the shock [increase in government spending, decrease in government spending, inflationary shock etc.] on the real GDP, interest rate, and the rate of inflation in the country of your choice.
The project should include both the theoretical analysis and VAR estimation.
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