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
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