Vietnam’s macroeconomic instability from monetary policy perpecstive

Abstract

Macroeconomic instability Indices of Vietnam shows that Viet Nam actually falls in macroeconomic instability. In addition to the effect of external factors such as increased capital inflow fluctuation and global economic crisis, easy monetary and fiscal policy also lead to estate and stock price boom and finally expose Vietnam economy to instability. Among them, monetary policy is one of the main causes leading to this situation because of frequency change in policy, inconsistency of inflation targeting, lack of long-term policies and administrative measures. This paper also points out some policy recommendations for effectively controlling the instability.