Scenario 2: The SVAR results indicates that the effects on output in Germany are very similar to the effect of the United States and Canada. A small effect is observed in France and Italy. Using the SVAR Report discuss the following.

What could be the reason why there is a small effect in Italy and France?

Using the graphical presentation show the output and price effects in the MCM model: state the countries that applied the model.

What caused a larger effect in the UK?

Scenario 2: The world economic model is a complex thing and its aims is to allocate limited resources to large number of the of agents. Due to this complexity, the economy is considered to be more of the science than art; discuss this concept using the concept of the SVAR results.

Scenario 3: Channels of the monetary policy; the SVAR result Table III.1 and IV give a cross country overview of the contribution of the real GDP of the channels of the monetary policy transmission as identified in the central bank macro-economic model.

Using the results, address the follow the following:

Report the identified results

What was agreed at the preparatory meetings?

What effort were made as a result?