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Impacts of monetary policy on asset markets: The case of Vietnam

Abstract

Monetary policy, which is implemented by central banks by influencing money supply, usually has important impacts on market interest rates, exchange rates, asset prices and the public’s expectations, thereby affects the macro economy. In this paper, impacts of the Vietnamese central bank’s monetary policy (i. e. the State Bank of Vietnam or SBV) on asset markets will be studied. The paper includes two main parts: (i) Fundamentals of asset prices in monetary transmission mechanism clarifying different effects that might be caused by central banks’ monetary policy on asset markets; and (ii) Empirical impacts of SBV’s monetary policy on asset markets including stock market, gold market and real estate market in Vietnam. The paper concludes that these markets are influenced by many factors, and SBV’s monetary policy might not be the key factor determining their volatilities. This paper was prepared for webinar held in March 14, 2016, with the attendance of professor Marina Fedotova, Financial University under the Government of Russian Federation; Irina Melnikova-head of the self-regulatory organizations, agencies and actuarial rating activities, Development of financial markets Department, Bank of Russia; Nguyen Thanh Nhan-Deputy Dean, Faculty of Banking, Banking Academy, Hanoi, Vietnam.

About the Authors

N. N. Thanh
Banking Academy of Vietnam
Russian Federation


Y. Vu. Hai
Banking Academy of Vietnam
Russian Federation


H. Vu. Ngoc
Banking Academy of Vietnam
Russian Federation


References

1. Mishkin F.S. (2013). The Economics of money, banking, and financial markets. 10th ed., Pearson Education, New York

2. Asian Development Bank. (2015). Key Indicators for Asia and the Pacific 2015

3. BIDV Securities Joint Stock Company (BSC), 2015. The risk of a real estate “bubble” will return? Available at: https://bsc.com.vn/News/2015/6/17/458 493.aspx

4. Canh N. et al. (2014). Monetary transmission mechanism: Some appropriate regression models. The Uni- versity of Economics - Ho Chi Minh City

5. Ha D. and Ngoc L. (2013). “The relationship between bank credits and real estate prices”, Journal of Develop- ment and Integration, no. 11 (21), 07-08/2013

6. MB Securities Joint Stock Company (MBS) (2015). Real Estate Sector, Equities Research

7. Savills Research & Consultancy (2016). Savills Property Price Index (SPPI) in Hanoi and Ho Chi Minh City Q4/2015

8. The State bank of Vietnam, 2015. Annual Report of the State bank of Vietnam 2015


Review

For citations:


Thanh N.N., Hai Y.V., Ngoc H.V. Impacts of monetary policy on asset markets: The case of Vietnam. Review of Business and Economics Studies. 2016;4(3):39-52. (In Russ.)



ISSN 2308-944X (Print)
ISSN 2311-0279 (Online)