• Abstract
  • Non-technical summary
  • 1 Introduction
  • 2 External shocks and monetary policy
  • 3 The GVAR model
  • 3.1 The data
  • 3.2 Estimation of country-specifi c models
  • 3.3 Impact elasticities
  • 3.4 Testing weak exogeneity of foreign-specificand global variables
  • 4 Generalized impulse response analysis
  • 4.1 Generalized impulse response functions
  • 4.2 Generalized forecast error variancedecompositions
  • 5 Concluding remarks
  • References
  • Tables and fi gures
  • European Central Bank Working Paper Series