Counterfactual Evolution of Output in Ireland  Note: Simulation of model proposed by Martin and Philippon (2017). Figure 4.
National Interest Rates under Taylor Rules  Counterfactual Taylor Rule Interest Rates 7 6 5 4 3 2 1 0 -1 -2 Euro Area - Calibrated  Greece - Calibrated  Ireland - Calibrated  Italy - Calibrated  Portugal - Calibrated  Spain - Calibrated  Note: Calibrated Taylor rules: 𝑖𝑡 = (1 − 𝜌)(𝑖∗ ) + 𝜌𝑖𝑡−1 , where 𝑖∗ = 𝜙𝑟 𝑟𝑡 + 𝜙𝜋 (𝐸(𝜋𝑡+1 ) − 𝜋∗ ) + 𝜙𝑦 (𝑦𝑡 − 𝑦𝑛 ).