Figure 7
The image contains five line graphs showing the impulse responses of various macroeconomic variables to M2 shocks over different lag periods. Each graph represents a different variable: Market Rates, Stock, Exchange Rate, Consumer Price Index, and Real GDP. The x-axis of each graph spans from 2006 to 2022, while the y-axis varies depending on the variable being measured. The graphs use three different lines to represent 3-period ahead, 6-period, and 12-period lag responses, color-coded in red, purple, and green respectively. The Market Rates graph shows a general upward trend in response to M2 shocks, particularly after 2017. The Stock graph indicates an initial positive response that diminishes over time. The Exchange Rate graph exhibits fluctuations with no clear long-term trend. The Consumer Price Index graph shows a slight upward trend, especially after 2020. The Real GDP graph displays a significant positive response to M2 shocks, peaking around 2016 before declining.Impulse responses of the macroeconomy to M2 at different lag periods