Determinants of inflation in Vietnam

• Main Authors: Phan Thi Cam Van, 潘氏錦雲
• Other Authors: Gi-Shian Su
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/17709938457301101746

碩士 === 南台科技大學 === 企業管理系 === 97 === ABSTRACT The aim of this study is to identify determinants of inflation in Vietnam before and after reform “DOI MOI” 1986 to present. Vietnam had experiences in fighting with hyperinflation in 1986-1989 periods, and at present Vietnam is facing with high inflation. The causes of hyperinflation are prices liberalization, exchange rate devaluation, wage adjustments, and monetization of in-kind payments. Recent years, Vietnam has faced with high inflation. The result shows that the causes of inflation in Vietnam in recent years stem from the “shock” in prices of the inputs (prices of oil and other commodities including the salaries); and from the liberal financial policy and the government’s decision on the cash supply to buy American dollars from the foreign currency inflow and other causes. Keynesian Whatever may causes inflation, inflation is still a currency phenomenon. On the one hand inflation has eroded the economic growth, but on the other hand it may stimulate the economy. Therefore in the present context the government should pursue a policy of curbing the inflation to the extent that it will neither cause economic instability nor leave a negative impact on the economic growth.