Monetery policy implementation in the context of international integration during the period 2011-2020

Abstract

The research tries to systematize basic problems with implementation of monetary policy, provide an overall estimate of the implementation of this policy by the SBV over periods, test and measure monetary policy transmission to identify major regulatory instruments, and suggest measures to maximize effects of the transmission mechanism of the monetary policy from 2014 to 2020 when Vietnam gradually integrates into the world economy. The research combines the descriptive statistics and VAR model to analyze each specific target in the period from 1990 to present time. The results show that the SBV has changed to employment of indirect instruments from direct ones and reduced commands or directions as an administrative body. The monetary policy in the past, however, was not very effective, which showed itself in the fact that changes in money supply did not produce strong effects on such variables as inflation and gross output. Among instruments for the monetary policy, exchange rate and refinancing rate are considered important in curbing inflation, and required reserve has great effects on economic growth, while the research finds no evidence of effects of credit limit set by the SBV on macroeconomic variables.