Hi David, after the first SVAR you explain that: "... The unemployment rate will decline slightly on impact after an inflation shock... Meanwhile, the interest rate will rise in response to a rise in inflation but decline in response to a rise in the unemployment rate", but when I look at matrix A estimates, I see exactly the opposite.
For example, the impact of a inflation shock is 0.0348406 on unemployment and -0.3777114 on interest rate.
So, which is the correct way to interpret matrix A estimates? Do you have to interpret them with the opposite sign?
Best regards!