Impact of the US unconventional monetary policy in times of crises on Vietnam

The study investigates the effects of the US unconventional monetary policy on the Vietnamese economy, focusing on the output and price index. Besides, the differences in the response of these indicators to the shock related to non-traditional tools implemented by the US in the Global Financial Cris...

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Bibliographic Details
Published in:Investment management & financial innovations 2023, Vol.20 (2), p.232-243
Main Authors: Sy Ngo, Nam, Thanh Doan, Ha
Format: Article
Language:English
Subjects:
crises
Economic crisis
Monetary policy
real economy
spillover
SVAR
unconventional monetary policy
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Summary:The study investigates the effects of the US unconventional monetary policy on the Vietnamese economy, focusing on the output and price index. Besides, the differences in the response of these indicators to the shock related to non-traditional tools implemented by the US in the Global Financial Crisis and during the pandemic crisis are also explored. By applying the Structural Vector Autoregressive model on the monthly dataset from January 2007 to April 2022, the results show that an expansionary monetary policy of the US by unconventional measures leads to a rise in the output and price index of Vietnam. In addition, risk-taking channels and portfolio rebalancing channels are important in the transmission of the US monetary policy to Vietnam, they cause booms in asset prices via the surge of capital flows. Moreover, another important finding is that the impact of US UMP on the Vietnamese economy during the Global Financial Crisis was generally two times higher than during the epidemic crisis.
ISSN:1810-4967
1812-9358
DOI:10.21511/imfi.20(2).2023.20