Inflation Dynamics and Monetary Policy Transmission in Vietnam and Emerging Asia

Rina Bhattacharya

No 2013/155, IMF Working Papers from International Monetary Fund

Abstract: This paper provides an overview of inflation developments in Vietnam in the years following the doi moi reforms, and uses empirical analysis to answer two key questions: (i) what are the key drivers of inflation in Vietnam, and what role does monetary policy play? and (ii) why has inflation in Vietnam been persistently higher than in most other emerging market economies in the region? It focuses on understanding the monetary policy transmission mechanism in Vietnam, and in understanding the extent to which monetary policy can explain why inflation in Vietnam has been higher than in other Asian emerging markets over the past decade.

Keywords: WP; CPI inflation; interest rate; Vietnam; inflation; monetary policy effectiveness; emerging Asian economies; inflation equation; transmission mechanism; inflation in Vietnam; inflation dynamics; price inflation; inflation increase; inflation development; inflation inertia element; Nominal effective exchange rate; Monetary base; Import prices; Exchange rates; Asia and Pacific (search for similar items in EconPapers)
Pages: 22
Date: 2013-07-03
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Citations: View citations in EconPapers (5)

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