The impacts of monetary policy to Vietnam economy

Abstract

MP has played an essential role in implementing the economic policy to the country. In addition to engine problems MP implementation, enforcement MP, the objectives, the transmission mechanism of MP is also an important issue in the study. In this study, the authors collected data from growth economy over 39 emerging countries in the period time of 1980-2014. Using VAR model to examine the impact of MP on the economy through four transmission channels: IRC, ERC, CC and APC. the results showed that, in 39 emerging countries; except the import price deflator, the remaining variables have a significant meaning to inflation rate. in vietnam, only the M2 monney supply, nominal effective exchange rate (NEER), nominal interest rate (NIR) is the impact on inflation. The study provides an intuitive way for economic development in Vietnam through inflation. It focuses on understanding the impact of the transmission channel and the transmission mechanism of them in Vietnam.