Macroeconomic Interdependence in a Two-Country DSGE Model under Diverging Interest-Rate Rules

7. Impulse-Response Analysis

x_d

0

-0.01

-0.02

-0.03

-0.04

10   20   30   40

pi_f

x_f

Pi_d

10   20   30   40          10   20   30   40

Figure 2: Responses to an impulse on the foreign productivity shock

pi_f

Figure 3: Responses to an impulse on the domestic cost-push shock

pi_d

23