Empirical studies of monetary policy transmission through credit channel in Vietnam

Abstract

This paper employed open-economy structural vector autoregressive model to evaluate monetary policy transmission
through credit channel in Vietnam. Using quarterly data from 1/2000 to 4/2014, impulse response function shows that
monetary policy management was likely to reponse more slowly to output than inflation. Comparing impulse response
function of output and inflation to innovation of interest rate concludes that monetary policy transmission will be more
rapid and effective in presence of credit channel