interpreting IRF (desperately need help)

[nazerahaqq]

Hi Guys,
I'm looking at the relationship between the price of oil (CRUPRI) and the real effective exchange rate (REER). I have no idea what the IRF output means and I need help ASAP. I'm using Eviews 7.0. Also, what diagnostic tests can I use to evaluate my VECM, the IRF's and Variance Decompositions>? This is my output below..


Impulse response to Cholesky (d.f) adjusted One S.D. Innovations



Response of CRUPRI:
Period CRUPRI REER


1 5.688129 0.000000
2 6.513736 -2.944587
3 5.255918 -3.602834
4 5.347446 -3.888895
5 6.137753 -4.775727
6 6.440616 -5.402973
7 6.295133 -5.387514
8 6.132019 -5.116535
9 6.085240 -4.942277
10 6.090057 -4.904024


Response of REER:
Period CRUPRI REER


1 3.290735 8.803347
2 2.407556 7.266701
3 2.560045 3.217173
4 5.305885 -2.017536
5 7.568701 -6.246962
6 7.935704 -7.689909
7 7.353336 -7.046693
8 6.852851 -5.976067
9 6.665488 -5.361988
10 6.651085 -5.220715


Cholesky Ordering: CRUPRI REER