Inflation in Vietnam and China driven by different economic factors.
The article compares how money supply, inflation, and output are related in Vietnam and China. The researchers used different models to analyze these relationships and found that inflation in Vietnam is mainly affected by expected inflation and output growth, while inflation in China is influenced by money supply growth and output growth. This study is the first to empirically compare these factors in the two countries and shows that the relationship between money supply, inflation, and output holds true in transition economies.