Assessing the price and output effects of monetary policy in Vietnam:evidence from a VAR analysis

Nguyen, Thi Mai Lan, Papyrakis, Elissaios and Van Bergeijk, Peter A.G. (2019) Assessing the price and output effects of monetary policy in Vietnam:evidence from a VAR analysis. Applied Economics, 51 (44). pp. 4800-4819. ISSN 0003-6846

[img]
Preview
PDF (Published_Version) - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (2MB) | Preview

Abstract

Using monthly data, we perform a vector-autoregressive analysis to measure the effects of monetary policy on the Vietnamese economy. We concentrate our attention on the period following the introduction of the Law on Central Bank in January 1998 (which brought the national monetary policy and its objectives in line with international practices). Contrary to previous studies on Vietnam, we find evidence suggesting that monetary policy (through the manipulation of interest rates) is an effective policy tool in stabilizing prices. However, credit growth tends to induce inflationary pressures. In addition, we find that an expansion of broad money supply leads to an increase in industrial production.

Item Type: Article
Uncontrolled Keywords: monetary policy,price level,var model,vietnam,economics and econometrics ,/dk/atira/pure/subjectarea/asjc/2000/2002
Faculty \ School: Faculty of Social Sciences > School of International Development
Related URLs:
Depositing User: LivePure Connector
Date Deposited: 13 Jun 2019 11:30
Last Modified: 20 Aug 2020 00:40
URI: https://ueaeprints.uea.ac.uk/id/eprint/71375
DOI: 10.1080/00036846.2019.1602708

Actions (login required)

View Item View Item