Monetary Policy Impact on China's Shanghai Stock Market-Empirical Analysis Based on VAR Model

摘要

The paper uses data (2002-2010) about the money supply, inter-bank offered rate, loan balance of financial institutions, tenants price index to create a VAR model framework for empirical research on the Shanghai Composite Index, uses the impulse response method, to analyze the stock market response to the different effects of monetary policy shocks, The results show that monetary policy can effectively regulate the stock price, the impact of money supply on the stock index is relatively small, the interest rate adjustment play a role in the stock price changes.