First ,you need to multiply your coefficients by -1 for normalization so that you have the correct signs. However, none of your error correction terms are statistically significant at the conventional levels. Inflation (normalized vector) is near significant but the error correction terms enter two equations with the wrong signs. With 31 observations, Johansen estimator may not yield good results. I also notice your model variables are all non-logged.
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You should start by upvoting my earlier comments. That is, the green button is for.
have done that already, please prof i sent you a message. Do pls graciously respond to me
Yes, I read it. I want my office to type the equation before sending it to you. I think it is better you explain it since am tired today. I will call you.
https://towardsdatascience.com/vector-autoregressions-vector-error-correction-multivariate-model-a69daf6ab618
Interpreting a multivariate Vector Error Correction Model (VECM) and Vector Autoregression (VAR) involves analyzing the relationships between variables over time. In a VECM, the focus is on long-term equilibrium relationships and short-term adjustments to deviations from these equilibria. In a VAR, the focus is on short-term dynamic interactions between variables without considering long-term relationships. Interpretation involves analyzing coefficient estimates, impulse response functions, and forecast error variance decompositions to understand the direction and magnitude of interdependencies between variables in the system.
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