Dhankhar, Rashmi2010-04-062010-04-062010-04-06http://hdl.handle.net/2097/3517This thesis uses a structural VAR approach with a recursiveness assumption to examine the effects of an expansionary monetary policy shock on financial variables. We build this on the established research of the effects of monetary shocks on macro variables by measuring the expansionary shock as an increase in the money supply. We also investigate interest rate policy and test whether financial market variables matter for the determination of interest rate. We analyze four different cases in this paper using the innovations in the money supply, non-borrowed reserves, the interest rate and bond yield (including bonds with remaining maturity period close to 30- years) as a measurement for the expansionary monetary policy shock.en-US© the author. This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s).http://rightsstatements.org/vocab/InC/1.0/monetary policy shocksfinancial variablesVector Auto RegressionThesisEconomics, Finance (0508)