Notes: This chart depicts the impulse responses of real output and inflation to a standard short-term interest rate shock (normalised to 100 basis points) for the ECB-BASE model, the ECB New Area Wide Model (NAWM) and the MMR model. Real output refers to the output gap as a percentage of GDP. Inflation is in year-on-year percentage change.
All responses refer to deviation from the baseline in percentage points. Policy effects in international comparison — the role of financial structure Structural features imply differences in transmission of monetary policy both across countries and over time.