I want to conduct a research study on the impact of monetary policy on economic growth using the VAR model, focusing on the COVID-19 period. I plan to select interest rates and money supply as independent variables and GDP growth rate as the dependent variable.
Would using the VAR model be appropriate for this analysis? Should I choose the study period from 2010 to 2024 or from 2019 to 2024 to better capture the impact of COVID-19?
There is no clear-cut answer to your question which period is more appropriate , so my suggestion would be to use both periods.
And, never use one model to answer a particular question, and that is because your question, as are basically all questions in economics , is phrased in terms of words, and the translation from a word-question to a problem in econometrics is so to say multi-valued.
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