| Summary: | 碩士 === 朝陽科技大學 === 財務金融系 === 103 === This study explores the effects of the fall of interest rate on inflation, stock returns, gold and USD prices in Vietnam in the period from October 2004 to September 2014. The empirical results shows that the interest rate regulated by the State Bank effectively control the inflation in the same period. Within the VAR framework, it was found that an expansion monetary policy by lowering the interest rate may influence prices of stocks, gold and USD in Vietnam. The effect of monetary policy on price of gold and USD lasts longer than on the stock price after a negative policy shock and thus liquidity flows to stock from the gold and USD market. The effects speeded from the gold and USD market to stock market, leading to the decline in price for both markets.
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