Open AccessThe Effect of Monetary Policy on Economic Growth in Lao PDR
Author(s) -
Khaysy Srithilat,
Thiphavanh Khamthoummabounmy,
Vaiyoth Lienpaserth,
Phiengsanith Chanthavixay,
Vonsy Douangty
Publication year - 2022
Publication title -
international journal of economics and financial issues
Language(s) - English
Resource type - Journals
ISSN - 2146-4138
DOI - 10.32479/ijefi.10557
Subject(s) - economics , monetary policy , quarter (canadian coin) , monetary economics , shock (circulatory) , autoregressive model , vector autoregression , real gross domestic product , central bank , macroeconomics , interest rate , econometrics , geography , medicine , archaeology
The empirical analysis of this study examines the effect of monetary policy on economic growth in Lao PDR. This study uses Vector Autoregressive Model (VAR) and quarterly data from the first quarter of 1995 to the last quarter of 2018. The results found that GDP was negatively responding to price level indicates that a shock in monetary policy or when the central bank adopts an expansionary monetary policy will result in consumer price level, and therefore leads to decline on the real output in the Lao economy. Moreover, this study also found negative effect of the real interest on GDP in Lao PDRD.