Uribe, Martín (contributor); Yue, Vivian Z. (contributor) - 2003
innovations in international financial markets take one quarter to
affect real domestic variables, whereas innovations in domestic … presupposes that innovations in world interest rates (epsilon1
rus
t
)
and innovations in country interest rates (epsilon1
r
t … balance to innovations in
these two sources of aggregate fluctuations.
We further note that the country-interest-rate shock …