GR
BIG
Grilli-
Roubini
q
ρ
У*
y
i*
i
i* - i
US/UK q
years
p*
1 2 3 4 5
years
US/UK Po,k
-8∣------------------,------------------,------------------,------------------,-----------------
0 1 2 3 4 5
years
Figure 18: Comparison of results. For a foreign monetary policy contraction
and the US-UK country pair, we compare the benchmark identification in
the GR specification to the original identification of Grilli-Roubini.
52
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