Advances and Applications in Statistics
Volume 62, Issue 1, Pages 19 - 29
(May 2020) http://dx.doi.org/10.17654/AS062010019 |
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AN EMPIRICAL STUDY OF THE EFFECT OF MONETARY POLICY ON THE ECONOMIC GROWTH OF VIETNAM
P. T. Dong and T. T. Hung
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Abstract: The article studies the impact of monetary policy on economic growth in Vietnam through the main tools, such as: money supply, basic rate and exchange rates using the vector error correction model (VECM) during the period 2000-2018. From the results of the calculation, it follows that for the short term, increase in money supply, reduction in interest rates and increase in exchange rates will have an effect towards promotion of the economic growth. For the effective policies of money supply and interest rates, it must be after one quarter to affect economic growth, for the effective exchange rate factor, it must be after 3 quarters to affect the value of GDP. On the other hand, when a monetary policy is introduced that has the effect of shifting the equalizing line in the long term of economic growth, the value of economic growth which will tend to move back to the equalizing line at a rate of error correction speed for the next quarter is 22.15% of this change. |
Keywords and phrases: economic growth, monetary policy, vector error correction model.
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