An Empirical Study on the Relationship of Asset Prices and Monetary Policy Objectives Under the Open Economy

This thesis studies the relations between the monetary policy objectives(such as interest rates,monetary supply,inflation,economic growth) and the asset prices,exchange rates theoretically and empirically by the use of cointegration,granger causality analysis and impulse response,variance decomposition analysis.The basic conclusion we draw is that the Price fluctuating of the financial assets and exchange rates will exert an influence on the monetary policy.In order to realize the objectives of monetary policy better,our country should Pay close attention to assets price fluctuating while making the monetary Policy at the same time.