Vietnam Interest Rate 2007-2011

CFVG MBA-20 Business Economics Nguyen Viet Dung VIETNAM INTEREST RATE 2007-2011: A ROLLER COASTER RIDE I. INTRODUCTION During 2007 2011, Vietnams relate divulge fluctuated greatly. In 2007, intimacy keeps were unchangeable at 8.25%, 6.5%, 4.5%, 11.4% for underlying involution rate, refinancing rate, discount rate, and short-term l residuum rate respectively; then they surged to their highest at 14%, 15%, 13%, 21% at the end of the second seat of 2008. then suddenly they started to drop as low as 7%, 7%, 5%, 6.3% by July 2009, then from in that respect they rebounded and has continued to increase, reaching 9%, 13%, 15%, 20% as of today (which is comparable to their highest in 2008). This variant is portray in the graph below: [pic] This paper summaries the trend of interest rates for each year from 2007 to 2011 as well as attempts to explain why interest rates have fluctuated in such manner for each period. In addition, this paper in any case attempts to identify two important causes that contributed to the fluctuation of interest rates during this period. The first cause which started the fluctuation in interest rate is the sudden surge in FDI clear-go from the end of 2006 to the end of 2008.

The second cause which creates fluctuation later on fluctuation of interest rate is the stop-go and inconsistence macro policies of Vietnam government. II/ fluctuation OF INTEREST rate FOR EACH PERIOD FROM 2007 TO 2011 A. 2007: Accelerating before the bestride The good ending of 2006 did have a good base for 2007 with high expectation receivable to the following reasons: Vietnam Communist compani! onship 10th Conference obdurate that the main focus for the 2006-2010 Socio-Economic externalise is economic growth. High agency level among insurance policy makers, local businesses, foreign investors in the prospect of Vietnam economy after the achiever of WTO and APEC in 2006. Therefore, governments main anteriority in economic policy for 2007 is to focus on growth. In prepare to achieved this,...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay