Inflation Dynamics and Monetary Policy Transmission in Vietnam and Emerging Asia

Author/Editor:

Rina Bhattacharya

Publication Date:

July 3, 2013

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 2013/155

Subject:

Exchange rates Foreign exchange Import prices Inflation Monetary base Money Nominal effective exchange rate Prices

English

Publication Date:

July 3, 2013

ISBN/ISSN:

9781475554731/1018-5941

Stock No:

WPIEA2013155

Pages:

22

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