Ahmed Kamara

1. Introduction The global financial system has significantly advanced over the last few decades, partly due to increased international trade and globalization. Such advancements have increased access to credit through commercial banks, mutual funds, co-operatives, etc., thereby increasing the money supply in economies worldwide.

This is an early access version, the complete PDF, HTML, and XML versions will be available soon. Open AccessArticle by Ahmed Kamara 1,* and Niraj P. Koirala 2,* 1 College of Business, Texas A&M University-Corpus Christi, 6300 Ocean Drive, Corpus Christi, TX 78412, USA 2 Department of Economics and Statistics, California State University Los Angeles, 5154 State University Dr, Los Angeles, CA 90032, USA * Authors to whom correspondence should be addressed.

2.2. Impulse Response to Uncertainty Shocks Figure 2 below shows 3D impulse response functions. Figure 2 shows the time-varying impulse response of variables to uncertainty shocks. The figure shows that uncertainty shocks have impacts of different magnitudes over the sample periods. Consider the first figure in the first row, which shows the response of the GDP growth rate to uncertainty shocks. The figure shows that uncertainty shock decreases output by 0.02% during the recession of 2001.