Empirical study on monetary policy transmission through credit channel in Vietnam

Abstract

This paper identifies the monetary policy transmisson through credit channel in Vietnam from 1998 to 2012. By employing Structural Vector Autoregression Model (SVAR), the authors modelled relationships between monetary variables such as interest rate, credit and macroeconomic variables such as GDP growth, inflation rate in Vietnamese economy. Based on the results, the authors analysed the direction and degree of transmisson of monetary policy management carried out by State Bank of Vietnam to monetary and macroeconomic variables through credit channel.