Inflation in Vietnam

Economic inflation is large issue that tends to take place everywhere, this has even appeared in the early days of the United States. To be exact, inflation is the rise sustained in the general level of cost on services and goods over time in an economy. When the cost level grows the unit of currency buys less services and goods. Some causes for inflation include: push in profit, productivity decline, increase in house prices and the printing of more money. Often times these result in services and goods becoming less affordable due to an increase in prices.

The economy is known as a new emerging economy especially after entering WTO in 2007. The Foreign Direct Investment (FDI) has increase considerably and the GDP is over 8% in the period of three years (2005-2007). Nonetheless, it is clear that the economic instability occurs after WTO accession of Vietnam 1 year. Consequently, the economy has suffered surging inflation as well as trade and fiscal deficit. (Figure 1)

1. What is inflation? Inflation is an increase in prices for goods and services (What is Inflation?).

Higher interest rates are never a good idea for a growing economy because it can directly impact it. Higher interest rates can affect

Contractionary monetary policies lead to a leftward shift in the aggregate demand curve. This tells you an increase in interest rates will cause a leftward shift in Aggregate demand, which leads to price level and output decreasing. Since price level is decreasing employment, which is directly related to price level, is decreasing also. In addition, this means unemployment will rise and inflation will fall. These changes are represented on the aggregate demand and Supply curve (Graph 8) and the Phillips curve when the leftward shift in AD because a movement along the Phillips curve (Graph

Having joined the World Trade Organization (WTO) in November 17, 2006 opens to Vietnam lots of advantages regarding the economy. According to the major principles, joining WTO brings Vietnam to the expansion of market and increase in exports. Especially in agriculture and textiles, WTO has set out various measures to gradually eliminate

Many adults and teenagers living in the present day still do not know why saving money is important. As much as we all hope emergencies won’t happen, the truth is we all know that sometimes they are unavoidable. If you do not have a safety net to lean on when these problems arise they can rapidly turn into additional debt and loans. Setting a little money aside will assist you when these life emergencies arise. Saving money also helps people achieve and aspire to their personal, social, political, and environmental goals. Once you have enough money saved you can become financially independent and able to make your own choices about how to spend your money. Additionally, saving money gives you peace and satisfaction. Knowing that you have your finances in control feels commendable. Not having to worry about sudden emergencies or costly repairs lowers your stress levels. Saving money helps in sudden emergencies, assists

In this paper, we will be using the log-log model. The log-log model used for the demand for wealth (attuned for inflation). We will be using the M1, as a display, for demand on wealth and interest rate as the illuminating variable affecting the demand for wealth. Using the regression, we will study the hypothesis. For this paper, the hypothesis used will talk about the connection between money and the interest rate. The null hypothesis, in this case, will be the interest affecting the demand for money in the economy. The data that we will be reviewing is from October 2008 to October 2011, 3 years worth of data. This connection will give us the basic understanding of the performance of the monetary policy in US economy after the crisis.

The mortgage payment in this model was not a statistically significant indicator for predicting financial assets, although the payment to the second mortgage was a statistically significant indicator negatively impacting the value of financial assets. The home equity line of credit payment was statistically significant at the .05 level for predicting a decrease to financial assets. The HELOC represents an important source of liquidity for borrowers. However, the risk of borrowing equity from the home decreases resources that would be available in retirement and increases the number of years required to pay off the home.

The United States had entered the contention in Vietnam as the world's superpower following its conclusive triumph over the Pivot controls in World War II, yet left Vietnam with an embarrassing annihilation, shockingly high losses, American open strongly partitioned and its pioneers dubious of what lay ahead in remote strategy. The country's longest and most incapacitating war – the main war the U.S. ever lost, had broad results and effect on most parts of American life from the economy, culture to local legislative issues and remote arrangement – some of which keep on doing so today.

The American economy in the decade from 1970-1979 was a mess. It was so bad that it was named “The Great Inflation of the 1970s”. The Vietnam War was still ongoing and the American people were worried. The main areas of concern for the American people during the 1970s were high unemployment, rising inflation, the energy crisis and an economic recession.

Ronald Reagan once said, “ In a world wracked by hatred, economic crisis, and political tension, America remains mankind's best hope.”America may be mankind’s best hope, but will it remain that way? America is the beacon for freedom and equality, but with the recent election, it may difficult for us to remain a country full of diversity and hope. In order for the United States economy to prosper, the government must control inflation rates, raise employment rates, and change the current income inequality ratio.

IS-LM model can be used to show the effect of expansionary and tight monetary policies. A change in money supply causes a shift in the LM curve; expansion in money supply shifts it to the right and decrease in money supply shifts it to the

    When an economy lowers interest rates, it should gradually perceive wealth accruing throughout businesses because stockholders set the economies

Economic of Viet Nam develops rapidly from 2009 to 2010. According to General Statistic Office, GDP in 2009 is $1000/people and it will be increase 6.5% [16].