The Research Of The Risks Infection Mechanisms Of Financial Derivatives In Financial Crisis Based On VAR Model

Since the 1970s,an financial crisis from U.S. had engulfed the whole world.It is this fniancial storm that makes the global economy was struggling in turbulence.The western countries have gone through hundreds of financial crises from scientific and technological revolution,but in the nearest years,the financial crisis has become more and more often,its frequency and order of severity have become more and more high.It is always accompanied by the shadow of financial innovation.Along with the overall breakout of the financial crisis,the whole world focuses on the financial innovation,which was spoken highly of by people.Is financial innovation the root of this global pestilence? How did financial derivatives cause risks infection in financial crisis? Firstly,this paper introduces the course of financial innovation about the financial derivatives in the U.S. financial crisis.Then,it uses financial and economical theories such as financial engineering,information economics and institutional economics,to analyse the risks infection mechanisms of financial derivatives in financial crisis.The next,along with the logical chain of breakout of financial crisis,it ponders over the reasons,after analysing the questions relate to the development of financial derivatives,it reaches an conclusion.At last,it draws inspiration from the financial crisis and puts forward to some useful suggestions about how to develope financial derivatives well in our country.