  The main goal of the paper is to extract the aggregate demand and aggregate
supply shocks in Greece, Ireland, Italy and Portugal, as well as to examine the
correlation among the two types of shocks. The decomposition of the shocks was
achieved by using a structural vector autoregression that analyses the
relationship between the evolution of the gross domestic product and inflation
in the period 1997-2015. The goal of the paper is to confirm the aggregate
demand - aggregate supply model in the above-mentioned economies.
