External_Instrument_VAR_Model:- Replicating Gertler-Karadi Proxy SVAR model

Gertler & Karadi in their seminal paper https://www.aeaweb.org/articles?id=10.1257/mac.20130329,

have provided an evidence on the transmission of monetary policy shocks in a setting with both economic and financial variables. They show that shocks identified using high frequency surprises around policy announcements as external instruments produce responses in output and inflation that are typical in monetary VAR analysis.

At present i have replicated the first model which is the single external instrument VAR model

In followup i will add the external instrument with bootstrap and cholesky decomposition

In addition i will try to replicate the approach of Prof Kanzig :- The model is bit different from Gertler & Karadi

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3185839

For the Whole Code i have used R program , and the main libraries for VAR /SVAR have been vars and svars library

https://cran.r-project.org/package=svars

https://cran.r-project.org/web/packages/vars/vars.pdf