Identification of the Dynamic Effect of Monetary Policy Instruments Shocks Based on SVAR Model

The paper focuses on the theory of SVAR model and it´s application in test the effect of difference monetary policy instruments in the difference period of asset prices fluctuation. Through the SVAR model, the structure shocks of different monetary policy instruments are identified, and the responses of asset prices to difference monetary policy instruments in the period of inflation and downturn are analysed, in order to give the answer of how monetary policy control the fluctuation of asset prices. The empirical results show that the monetary policy are effective, and in the period of asset prices inflation interest rate can be used, especially Ml plays an important role in control asset prices bubbles, credit management is strengthened.