introduced in periods when monetary tightening prevailed? Since economic theory usually pays attention to the steady state change …

particular, using panel vector autoregressive (VAR) models we analyze whether banks increased their domestic government bond …

restriction that economic theory is not violated, while the shocks are still recursively identified. We solve this optimization … “almost recursively identified approach with parameter restrictions” leads to a solution that avoids an estimation bias …, generates theory-consistent impulse responses, and is as close as possible to the recursive scheme …