The Impact of Monetary Policy on Economic Growth in Vietnam
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This article focuses on investigating the impact of monetary policy on economic growth in Vietnam in both the short and long term using the Vector Error Correction Model (VECM) over the period from 2005 to 2023. The research results indicate that, in the long term, both M2 money supply and exchange rates have a positive impact on economic growth. Among these, the influence of the M2 money supply on growth is greater than that of exchange rates, suggesting that adjustments in the M2 money supply allow for immediate and comprehensive effects on the economy compared to adjustments in exchange rates. Conversely, real interest rates have an inverse effect on GDP in the long term.
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