Financial Risk from the Impact of Monetary Policy on the Stock Market: VAR Approach

摘要

the risk from the stock market is one of the main financial risks and it exits inevitably. So it is necessary to know the feasible program to reduce the risk. This paper mainly researches the impact of monetary policy on the stock market. Firstly the research status about the VAR model and monetary policy are illustrated .Further, empirical research based on VAR model validates the impact of monetary policy on the stock market. Finally, it gives the suggestions and possible solutions from the perspective of financial risk early warning.