Analysis of inflation and its causes in Vietnam from 1996 to 2011

Abstract

There have been many disputes of economists and policy makers over the causes of inflation I Vietnam in recent years. This study aim to provide an analysis of causes based on theories such as quantity theory of money, Philip Curve, Cost-push inflation and so on. By examine whether these theory can be applied to explain the cause in Vietnam, the results showed that the root cause of inflation in Vietnam is money supply. Beside that Philip Curve which is very popular used to observed the stability–growth trade-off in developed countries but not evident in Vietnam. Main findings from this study suggest some critical points in policies implications for Government in policy making process.