TY - JOUR
T1 - The impacts of money policy on growth and inflation in Vietnam
T2 - Results from the VAR model
AU - Hoang, Thanh Tung
AU - van Anh Nguyen, Thi
N1 - Publisher Copyright:
Copyright © 2021 Inderscience Enterprises Ltd.
PY - 2021
Y1 - 2021
N2 - In the article, based on empirical research using the VAR model, the authors examine the influence of monetary policy on growth and inflation in Vietnam in the period 2008-2017. The results show that, when applying broad monetary policy, interest rates will reduce, the currency devaluated in the first quarter in accordance with the theory. CPI remained unchanged in the first quarter then rose in the next quarter, output declined slightly in the first quarter and then rose in the next quarter, then reversed and fluctuated little, which may be explained by the delay in policy enforcement. The model results also confirm that past inflation plays an important role in determining inflation in Vietnam. Therefore, the government and the State Bank of Vietnam need to maintain the target of inflation control, thus contributing to macroeconomic stability and rational growth support.
AB - In the article, based on empirical research using the VAR model, the authors examine the influence of monetary policy on growth and inflation in Vietnam in the period 2008-2017. The results show that, when applying broad monetary policy, interest rates will reduce, the currency devaluated in the first quarter in accordance with the theory. CPI remained unchanged in the first quarter then rose in the next quarter, output declined slightly in the first quarter and then rose in the next quarter, then reversed and fluctuated little, which may be explained by the delay in policy enforcement. The model results also confirm that past inflation plays an important role in determining inflation in Vietnam. Therefore, the government and the State Bank of Vietnam need to maintain the target of inflation control, thus contributing to macroeconomic stability and rational growth support.
KW - Credit
KW - Economic growth
KW - Inflation
KW - Monetary policy
KW - Money supply
KW - Vietnam
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U2 - 10.1504/IJBG.2021.113281
DO - 10.1504/IJBG.2021.113281
M3 - Article
AN - SCOPUS:85102015791
VL - 27
SP - 293
EP - 312
JO - International Journal of Business and Globalisation
JF - International Journal of Business and Globalisation
SN - 1753-3627
IS - 3
ER -