With China\'s participation in the international market division,net exportation can\'t reflect the connection between external demand shocks and internal economy fluctuation fully.

Furthermore, demand shocks can be permanently incorporated in asset prices, which give stock price pe.

The research findings are as follows:the demand impact is the major force behind the current inflation pressure in China,wherein investment demand and consumption demand have considerable impact while the net export has insignificant effect on the inflation rate.

During the last 26 years, aggregate economic fluctuation is influenced not only by demand shock, but also by supply shock in China.

In the case of a demand shock,this paper argues that the effective demand will affect exchange rate uncertainly but the prices will affect it in a definitely way,by contraries,under a supply shock circumstances,the effective demand will affect exchange rate definitely but the prices will affect it in an uncertainly way.

Study on Aggregate Demand Shocks of Public Emergencies Based on Long-run Recursive Identification;