[STBI-24-11-2016] Monetary Policy Transmission in Vietnam: Evidence from a VAR Approach

stbi-2016-11-23-monetary_policy-250
 
  • 11:00 am, Thursday, 24-11-2016
  • Hall H.001, UEH School of Economics – 1A Hoang Dieu Street. Phu Nhuan District. HCM city
  • Authors:
    • Vo Xuan Vinh – University of Economics Ho Chi Minh City (UEH)
    • Nguyen Phuc Canh- University of Economics Ho Chi Minh City (UEH)

Abstract:

A thorough understanding of transmission mechanism is a key for central bank in implementing monetary policy successfully. This paper investigates the existence of interest rate channel, exchange rate channel and asset price channel in Vietnam employing VAR model analysis using monthly data ranging from 2003M1 to 2012M12. The results from the analysis indicate the evidence of cost channel. However, we find that exchange rate channel and asset price channel of monetary transmissions are not evidenced in Vietnam.

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