Assessing the price and output effects of monetary policy in Vietnam: evidence from a VAR analysis

Thi Mai Lan Nguyen, Elissaios Papyrakis, Peter A.G. Van Bergeijk

Research output: Contribution to journalArticlepeer-review

15 Citations (Scopus)
18 Downloads (Pure)


Using monthly data, we perform a vector-autoregressive analysis to measure the effects of monetary policy on the Vietnamese economy. We concentrate our attention on the period following the introduction of the Law on Central Bank in January 1998 (which brought the national monetary policy and its objectives in line with international practices). Contrary to previous studies on Vietnam, we find evidence suggesting that monetary policy (through the manipulation of interest rates) is an effective policy tool in stabilizing prices. However, credit growth tends to induce inflationary pressures. In addition, we find that an expansion of broad money supply leads to an increase in industrial production.

Original languageEnglish
Pages (from-to)4800-4819
JournalApplied Economics
Issue number44
Early online date16 Apr 2019
Publication statusPublished - 2019


  • Monetary policy
  • price level
  • VAR model
  • Vietnam

Cite this