Fig. 2
From: Dynamic structural impacts of oil shocks on exchange rates: lessons to learn
Cumulative responses of real currency returns: point estimates with one- and two-standard error bands. Notes: Estimates based on the SVAR model are described in Sect. 3.1. The thick black line presents the responses of the real exchange rates to a one standard deviation variation in oil shocks. The dotted lines present the confidence intervals which were constructed using a recursive-design wild bootstrap [please refer to Goncalves and Kilian (2004)]. The vertical axis (the y axis) represents the amplitude of the impulse responses. The horizontal axis (the x axis) represents the 12 months following an unanticipated one standard deviation variation of oil shocks