The Conduct Analysis Of The Fluctuation Of Oil Price Impacting On The Financial System

In recent years, international oil price was up and downs. In view of the complexfinancial status, there is no doubt that oil price on the international financial systemcaused some impact. However, there are few analysis of this impact at home and abroad.This paper based on financial attributes of oil and embarked on the three importantmarket of financial system: exchange, stock and currency. Select some representativeindicators of financial system such as the nominal effective exchange rate index, thestock price index and the money supply (M2) index, use16quarterly data of14countries to construct the composite index which can reflect the overall financial system,and on this basis to build the dynamic panel model for studing the influence’s level ofexpansion or contraction of financial system. In our paper, sructural equation model isto solve the problem of empowerment indicators, the use of GMM estimation (GMM) isto achieve the test of dynamic panel data’s estimation. It is not only effectively studing14countries in oil prices impact on the effects of the financial system,but alsoachieveing a breakthrough on qantitative research methods.