Product market shocks have bigger impact on economy than money market shocks.
The article compares short-term and long-term effects of economic shocks on inflation and GDP growth. It looks at how shocks in goods and money markets can create uncertainty in these key economic indicators. The study uses different countries with different resources to get a broad view. By using structural VAR models, the researchers analyze the impact of shocks on inflation and GDP over time. They find that shocks from product markets have a bigger impact than those from money markets.