THE INFLUENCE OF MACRO FACTORS ON INFLATION IN VIETNAM

Abstract

The article clarifies the theoretical basis of inflation and the results of previous works on the impact of macro factors on inflation. The paper uses Bayes regression method to find out the effect of money supply and other elements on Vietnam’s inflation from 1996 to 2020. Research results show that the money supply has the same impact on inflation. Negative effects on inflation and exchange rate negatively affect inflation, but the level of influence is not significant. The results provide empirical evidence for state management agencies to have appropriate strategies and policies to help control inflation and grow strongly and sustainably.