<em>Institutional Variables, Capital Flows and GDP: A Causality Analysis</em> (by Giuseppe Mastromatteo, Giovanni Verga) - ABSTRACT: uring the last years the effects of socio-institutional and political variables on economic conditions has gained importance in the literature. This paper investigates the...

This paper employs exogenous measures of monetary policy shocks directly derived from financial market information to investigate how the economy responds to the surprise component of monetary policy decisions as opposed to central bank announcements about future movements in the policy rate. We...