LSTMs analyze shock propagation in economic systems using the LSTM multiplier response function, capturing nonlinear dynamics and current states more effectively than traditional VAR models, enhancing forecasting accuracy. Introducing LSTM Multiplier Response FunctionsLong-short term memory networks (LSTMs) offer an innovative approach for studying shock propagation in complex economic and financial systems. This working paper presents the LSTM multiplier response function, akin to the impulse response function in a linear VAR model. Comparing LSTM and VAR ModelsThe paper compares LSTM and VAR models within a multivariate economic context. Source: Shock Propagation in LSTM Multivariate Time Series Systems – ASEAN+3 Macroeconomic Research Office