Inflation targeting: experiences from emerging Southeast Asian countries and policy implications for Vietnam

Abstract

The dissertation has provided an in-depth study of "Inflation Targeting" (IT) in emerging and developing countries in Southeast Asia and the issues of applying IT in Vietnam. Remarkably, given the shortcomings of the current monetary policy framework in Vietnam, considering an IT framework becomes essential as it effectively raises monetary authorities’ credibility and improves monetary policy’s efficiency in various emerging and developing countries (e.g., Indonesia, the Philippines, and Thailand). Moreover, even amid significant shocks like the GFC or the COVID-19 pandemic, the IT framework still demonstrates its relevance. This further underscores its potential as a beneficial option for Vietnam’s monetary policy. Adopting IT can address existing limitations and lead to more robust and effective monetary policy management, further boosting macroeconomic performance in Vietnam.