Exogenous variables

Coefficients

Regime 1 $\gamma <28.2809$

Regime 2 $\gamma >28.2809$

Output gap ( $spib{h}_{i,t}$ )

1.87e−08

1.90e−06***

Price stability ( $spri{x}_{i,t}$ )

−0.00302*

−0.1429*

Financial Stability ( $sfi{n}_{i,t}$ )

1.43e−06

−4.27−05*

Stability of net foreign assets ( $snf{a}_{i,t}$ )

1.34e−05*

3.55e−06

Constant

13.284*

13.284*