## Figure 3.9. Response of Domestic Financial Conditions to Shocks

## Source details

**Canonical URL:** [Figure 3.9. Response of Domestic Financial Conditions to Shocks](https://www.imf.org/-/media/files/publications/gfsr/2017/april/figure3-9.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2017/april/figure3-9.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2017/april/figure3-9.pdf.json)

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### Description
- Graph shows impulse response functions and 90 percent confidence bands of domestic financial conditions indices to shocks.
- Two shock types shown: "Monetary policy shocks" and "Global financial shocks".
- Vertical axis values displayed: –10, –5, 0, 5, 10, 15, 20, 25, 30
- Horizontal axis labels displayed as a sequence of months: 1 3 5 7 9 11 13 15 17 19 21 23 (displayed in source as "1357911131517192123").

### Methodology
- Based on a panel vector autoregression model.
- Sample restricted to countries with flexible exchange rates.
- Confidence bands are 90 percent.
- Caption text preserved: "The figure displays the impulse response functions and 90 percent confidence bands of domestic financial conditions indices to global financial or domestic monetary policy shocks for countries in the sample with flexible exchange rates. It is based on a panel vector autoregression model. See Annex 3.4 for details."

### Key findings and interpretations
- Global financial and domestic monetary policy shocks appear to affect local financial conditions.
- Time horizon shown: up to month 23 (as labeled on the horizontal axis).
- Response magnitudes are shown on a scale from –10 to 30 (percent, standard deviations).

### Visual elements (as reported)
- Two distinct series plotted: "Monetary policy shocks" and "Global financial shocks".
- Shaded areas or bands represent 90 percent confidence intervals around impulse responses.

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/figure3-9.pdf_