Abstract
In this comment we note that the methodology used by Apergis and Karfakis (1996) (a) leads to restricting the contemporaneous impact matrix not the long-run impact matrix in identifying their SVAR model, contrary to to their stated objective, and (b) that the Bernanke-Sims procedure of identification and the conventional Cholesky-decomposition based analysis of a VAR lead exactly to the same results as long as the impact matrix is restricted to be lower triangle.