| It has been15years since the euro area first established. This group contains18countries now, which is the most integrated economic organizations among the world,and its influence is also beyond doubt. Especially the European sovereign debt crisisaccursed in2009, spreading so fast to the rest of the world, which lead to a great lossto the world economy. The measure took by ECB is wildly concerned by the globe,because the monetary policy decided by the ECB is critical to accommodate the Euroarea economy, as well as the countries through the world, including China. We calledthis phenomenon ‘the overflow effect of monetary policy’.There are two theories to study the overflow effect of monetary policy betweentwo countries. One model is called M-F model, another is called NOEM(Newly openeconomic model).As two important economic groups or countries in the world, theoverflow effect of monetary policy in Euro area could create a deep influence inChina，as well as its domestic policies. This paper use SVAR model to prove theresult caused by Euro area monetary policy in China, what is more, we divide thetransaction path into two ways, the first is International Path, the second is FinancialPath.We come to a conclusion depend on the SVAR model, insert relative dates weprove that both two ways are playing an important role in the International Trade. |
