DOI:

Abstract

The origin of inflation is often pondered in light of monetary policies. Yet in recent years, economists have started studying its origin via fiscal policies, especially budget deficit. This paper is to sum up theoretical paradigms and the application of VAR model with a view to testing the relationship between the fiscal policy, the monetary policy, and inflation in Vietnam. Quantitative analyses indicate that inflation in Vietnam, besides effects of monetary policy, is also impinged by the fiscal policy (i.e. the national budget overspend) within recent years.

Keywords

Fiscal Policy; Monetary Policy; Budget Overspend; Inflation; Vietnam.