Why is it interesting? What if our perception on the structure of the economy is seriously biased? This question motivates the comparison of four models adopted by the ECB against one policy rule, to investigate if their impulse responses would be divergent. What to do on the MMB? Models: EA_AWM05, EA_CW05fm, EA_CW05ta, EA_SW03 Policy Rules: Gerdesmeier & Roffia (2004) Shocks: Monetary Policy Shock Variables: Inflation, Output gap What is interesting? EA_AWM05 shows the highest degree of persistence in inflation and output gap while EA_SW03 the lowest; EA_CW05fm and EA_CW05ta are in between. (CH) Reference: Küster K., & Wieland V. (2005) Edited by Huang C.C.