Impact assessment of money policy to inflation in Vietnam in the period 2008 - 2017

Abstract

    In the article, the authors will use the VAR model to examine the impact of monetary policy on inflation in Vietnam in theperiod 2008 - 2017. The VAR model is capable of measuring shocks from one variable to the other in terms of an endogenous interactionmechanism, without requiring too much detail on the structure of the economy. This is especially helpful for researchers who want tomeasure the fluctuations (shocks) of monetary variables to the inflation of the economy.There have been many studies using the VAR model to study the impact of monetary policy in Vietnam. However, according to ourunderstanding, none of the studies provides a full picture of the impact of monetary policy on inflation from 2008 to 2017, a period whenthe Vietnamese economy was challenged by The financial crisis began in the United States in 2008, followed by Europe's sovereign debtcrisis in 2010, which has led to a slowdown in world economic growth. The practical implementation of the monetary policy from 2011to now shows that the decision of the National Assembly and the annual direction of the Government for the goal of curbing inflation andstabilizing the macro-economy play a particularly important role. In determining the effectiveness of the State Bank of Vietnam administration.With empirical research using the VAR model, we will examine the impact of monetary policy on inflation in Vietnam in the period2008 - 2017, thus providing some discussion and conclusions from the model results.