Impulse response function definition

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impulse response function

impulse response function logo #21011Consider a shock to a system. A graph of the response of the system over time after the shock is an impulse response function graph. One use is in models of monetary systems. One graphs for example the percentage deviations in output or consumption over time after a one-time one percent increase in the money stock. Contexts: macro; econometrics; es...
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