Concept of inflation.In economics, inflation is an increase in the general price level of goods andservices in an economy.. Inflation situation of Vietnam in 20083.1.Economic development
BANKING ACADEMY ECONOMICS BÀI TẬP LỚN Term: Macroeconomics TOPIC: Inflation in Vietnam in 2008 Teacher: Bùi Duy Hưng Students: Bùi Thị Hồng Ngọc-24A4010800 Nguyễn Thị Tú LinhĐỗ Quỳnh Trang (Leader)Cao Thị Hương GiangNguyễn Phương ĐôngPhạm Thị Hương GiangClass: K24-CLC-TCC Group: Ha Noi, 19th, December, 2022 TABLE OF CONTENTS Introduction The theoretical basis of inflation 2.1 Concept and causes of inflation 2.2 The effects of inflation on the economy 2.3 Measures to curb inflation Inflation reality in Vietnam 2008 3.1 Economic happening 3.2 Inflation happening 3.3 The causes of high inflation in vietnam in 2008 3.4 The impact of inflation on Vietnam's economy in 2008 Solutions to control inflation in 2008 that the government had taken Conclusion 1 Introduction The market mechanism has rung alarm bells for many changes in the Vietnamese economy in recent decades In an active market economy and fierce competition to earn high profits and stand firm in the market, economists as well as businesses must quickly approach and grasp the issues of the market new economy Besides the problems required to business, there are other notable issues in the economy One of the most prominent problems is inflation Inflation is a common economic phenomenon, but high inflation is a prominent problem in socio-economic life Inflation affects the entire national economy, social life, especially the working class The typical feature of the actual situation of the economy with inflation is that the prices of most goods are rising and the purchasing power of money is decreasing rapidly High inflation has happened to Vietnam's economy, especially in the first months of 2008 This phenomenon has attracted the attention of all classes of people, the Government and researchers People have varied reactions, many people have different views on inflation and inflation control and the Government has continuously introduced policies to control inflation Realizing the significant influence of inflation on the national economy, our group chose the research topic "Inflation in Vietnam in 2008" Through this topic, we want to analyze the inflation phenomenon of Vietnam in 2008, explain the causes of demand-pull inflation, cost-push and monetary problems and other causes from a macroeconomic perspective, thereby gaining a deeper understanding of the government's policies to control inflation The theoretical basis of inflation 2.1 Concept and causes of inflation 2.1.1 Concept of inflation In economics, inflation is an increase in the general price level of goods and services in an economy When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services The common measure of inflation is the inflation rate, the annualized percentage change in a general price index As prices not all increase at the same rate, the consumer price index (CPI) is often used for this purpose 2.1.2 Causes of inflation 2.1.2.1 Demand-pull inflation Demand-pull inflation happens when the demand for certain goods and services is greater than the economy's ability to meet those demands When this demand outpaces supply, there's an upward pressure on prices - causing inflation 2.1.2.2 Cost-push inflation Cost-push inflation is the increase of prices when the cost of wages and materials goes up These costs are often passed down to consumers in the form of higher prices for those goods and services 2.1.2.3 Increased money supply Increased money supply is defined as an increase in the total amount of money in circulation If the money supply increases faster than the rate of production, this could result in inflation, particularly demand-pull inflation because there will be too many dollars chasing too few products 2.1.2.4 Devaluation Devaluation is downward adjustment in a country's exchange rate, resulting in lower values for a country's currency The devaluation of a currency makes a country's exports less expensive, encouraging foreign nations to buy more of the devalued goods Devaluation also makes foreign products for the devaluing country more expensive which encourages citizens of the devaluing country to buy domestic products over foreign imports 2.1.2.5 Built-in inflation and rising wages Built-in inflation occurs when enough people expect inflation to continue in the future As the price of goods and services rises, people may come to believe in a continuous rise in the future at a similar rate Because of these shared expectations, workers may start to demand higher wages in order to anticipate rising prices and maintain their standard of living Increased wages would result in higher costs for businesses, which may pass those costs on to consumers Higher wages also increase consumers' disposable income, increasing the demand for goods that can push prices even higher A wage-price spiral can then be set in place as one factor feeds back into the other and vice versa 2.1.2.6 Policies and regulations Some policies can also lead to cost-push or demand-pull inflation For example, when the government subsidizes taxes on certain products, it can increase demand If that demand is higher than supply, the costs can go up Another example is where strict building regulations and rent stabilization policies can inadvertently increase costs and create an inflationary environment by passing those costs on to residents or reducing them artificial housing supply 2.2 The effects of inflation on the economy Inflation exists in any economy and it brings both positive and negative effects to the economy Because inflation reduces the purchasing power of money, it affects interest rates, income, the gap between rich and poor, and public debt 2.2.1 Negative effects of inflation 2.2.1.1 Inflation affects interest rates In order to maintain stable and balanced operations, banks need to stabilize real interest rates Meanwhile, the real interest rate is calculated as the difference of the nominal interest rate minus the inflation rate When interest rates rise, borrowing costs will increase, which will reduce the demand for investment and development with businesses, which will lead to the main consequences of economic recession and increased unemployment 2.2.1.2 Inflation causes real income to decrease When inflation rises and nominal incomes remain unchanged, workers' real incomes fall because their current income levels buy fewer goods and services This has a great impact on society because inflation makes people poorer at this time 2.2.1.3 Inflation causes imbalance between rich and poor When inflation increases, it may cause an imbalance in the supply-demand relationship of goods in the market Such inflation will likely cause difficulties in the economy and create a widening gap in income and living standards between the rich and the poor 2.2.1.4 Inflation affects public debt Inflation caused the domestic currency to depreciate faster than the foreign currency calculated on the debt, while the economic recession led to a decrease in the ability to repay and the state of the country's debts become more serious 2.2.2 Positive effects of inflation If inflation is not too high, there are also some positive socio-economic effects such as stimulating consumption, borrowing and thereby reducing the unemployment rate In addition, low inflation will promote countries to invest, develop and orient to achieve stronger economic and social goals 2.3 Solutions to control inflation Tighten monetary policy: Aim to decrease the money supply Particularly, The Central Bank can increase reserve requirements and issue compulsory bonds to commercial banks and these banks must buy them.Cut all expenditures that can be cut from the budget such as purchasing public equipment, reducing payroll, cutting or reducing social welfare benefits Contractionary fiscal policy: The government's implementation of reducing government spending, increasing tax revenue or combining reducing government spending and increasing tax revenue Thereby reducing the output of the economy, reducing aggregate demand causing lower inflation Focus on developing industrial production, agriculture and services, ensuring balance supply and demand for goods A big reason for strong inflation is that the supply is too low compared to the demand Therefore, it is necessary to increase production and business to ensure that the supply is equal to the demand or not less than the demand level to reduce the inflation rate Strengthen market management, combat speculation, smuggling and trade fraud, control the observance of the State law on prices Strengthen measures to stabilize people's life and production, expand implementation of policies on social security Inflation situation of Vietnam in 2008 3.1 Economic developments 2008 The socio-economic situation of our country in 2008 took place in the context of many complicated and unpredictable changes in the world and domestic situation Crude Document continues below Discover more from: Macro economics ECO02H Học viện Ngân hàng 74 documents Go to course Chapter Macroeconomics -… Macro 100% (6) oil prices and prices of many other raw materials and goodseconomics on the world market increased sharply in the middle months of the year, leading to a high price increase of most domestic commodities; inflation occurs in many countries around the world; the global financial crisis led to a recession in a number of major economies and a decline in the world economy; Natural disasters and epidemics of crops and livestock THAM KHAO occur CAU continuously throughout the country, causing great impacts on production and people's TRA LOI 05 CAU TU… lives In July 2008, the world gasoline price jumped to 147.27 USD/barrel This price level is constantly in danger of being pushed higher in the middleMacro of the year Under the 100% (5) pressure of world oil prices, the domestic price of A92 gasoline suddenly increased from economics 14,500 VND to 19,000 VND/liter in July 2008 High gasoline prices not only affect the economic growth rate, and the development of businesses, but also the normal life of people It is worth mentioning that when the gasoline price was adjusted to increase sharply according the worldChapter gasoline BTtoMacro price, people were called to share difficulties with businesses However, when the world oil price dropped sharply to less Macro than 40 USD/barrel, the 100% 21 and people still have domestic petrol price only dropped from 500 to 1,000 VND/time to (2) economics buy petrol at a price considered as low price high a) The currency market fluctuates strongly In 2008, credit institutions, especially the commercial banking system, faced many fluctuations In the first six months of 2008, in order to control inflation as well as limit MACRO ECONOMICS the hot growth of commercial banks, the State Bank had to tighten monetary policy: increase required reserves, require banks to buy compulsory bills, press credit rate KINH TẾgrowth VĨ MÔ of 30%, prohibiting lending beyond the ceiling Macro b Securities and real estate "free fall" 100% (1) Until December 2008, when the stock market was still in "hibernation" economics for a long time, the VN-Index only still fluctuated around 300 points - the lowest level in the past years The stock price index fell, causing many stocks to drop to only 1/10, 1/20 of the price when the price peaked This situation pushed many investors into losses and Tindung a series ofNH securities - Độc companies also faced the risk of bankruptcy Real estate shares the same fate as stocks quyền chi phối… c Employees face the risk of reduction and job loss 10 According to the Vietnam Association of Small and Medium Enterprises, 80% of Macro small and medium enterprises face difficulties Among them, 60% of enterprises are 100% (1) doing poorly and about 20% of enterprises are stagnating, closing, or going bankrupt economics This number is making many experts pessimistic 3.2 Inflation in Vietnam 2008 The socio-economic situation of our country in 2008 took place in the context of many complicated and unpredictable changes in the world and domestic situation Crude PHÂN-TÍCH-THỊoil prices and prices of many other raw materials and goods on the world market increased sharply in the middle months of the year, leading to aTRƯỜNG-QUẦN-… high price increase of 19 most domestic commodities; inflation occurs in many countries around the world; the Macro and a decline in global financial crisis led to a recession in a number of major economies 100% (1) economics the world economy; Natural disasters and epidemics of crops and livestock occur continuously throughout the country, causing great impacts on production and people's lives Table: Consumer price index, gold price index and US dollar price index nationwide in October 2008 Price Index October 2008 vs (%) Original period 2005 CONSUMER PRICE 148,20 INDEX 10/200 126,72 12/2007 9/2008 Price index in the first 10 months of 2008 compared to 2007 121,64 99,81 123,15 Food service and food 172,14 140,56 132,12 99,58 136,95 201,99 160,06 151,41 98,09 149,58 161,16 132,82 124,44 100,01 133,05 169,86 139,54 131,37 100,47 131,92 128,32 113,27 111,34 100,67 110,21 126,05 112,55 110,82 100,70 109,81 Housing and 148,40 construction materials (*) Household 125,94 appliances and appliances 122,84 116,76 98,92 111,99 111,26 100,73 108,36 Pharmaceutical, 123,00 medical Means of 138,44 transportation, post office 109,76 108,75 100,58 108,72 124,82 119,56 99,06 116,66 In which: Post and 83,46 telecommunications 89,21 90,39 99,82 88,44 Education 115,02 106,71 106,56 100,69 103,63 sports, 115,74 109,50 109,30 100,38 105,03 10 Other supplies and 132,35 services 114,65 111,69 100,85 113,11 Gold Price Index 206,76 125,15 112,53 103.21 137,43 US Dollar Price Index 104,45 102,46 102,95 99,95 In which: a.Ration (rice, corn,…) b Food (meat, vegetable,…) c Eating out at home family Beverages and Tobacco Garment, hats, shoes Culture, entertainment 122,39 101,71 (*) This group includes: housing, electricity, water, fuel, and building materials Thus, after 12 years, the inflation situation broke out again in Vietnam and there is a risk broke out strongly in 2008, the specific situation is clearly shown in chart 2.1, chart 2.2, and table 2.1 Consumer price index of some commodities skyrocketed in 2007: In 2007, the price of ration and foodstuffs (R-FS) on the Vietnamese market increased to the rate of 18.9%, much higher than the inflation rate of 12.63%, which the food group increased 15.5%, food increased 21.16% Consumer price index of a number of commodities skyrocketed in the first quarters of 2008: In the first months of the year, the price of R-FS increased by 18.01%, which is one and a half times higher than 11.6% of the previous year CPI inflation and high equivalent to the increase in R-FS prices of the whole year 2007, in which food increased by 25%, and food by 15.6% 3.3 The causes of high inflation in vietnam in 2008 3.3.1 Causes from the world 3.3.1.1 Causing inflation by cost-push Because the price of raw materials increases, businesses will increase prices to balance profits Meanwhile, demand will not decrease because most of the commodities are necessities such as gasoline, oil and food, so there will be a price crisis due to costpush a) The price of energy, raw materials and input materials for production continuously increased Oil prices and prices of input materials for production continuously increased In the four years from 2003-2006, the global economy continuously experienced high growth, especially China, has pushed the global energy demand to a sudden increase, along with political instability and military conflicts in the Middle East, which are the direct causes of the unprecedented increase in oil prices in the region In March 2018, the price of oil reached 110 USD a barrel, an unprecedented price in history OPEC countries raised oil prices, while the demand for oil did not decrease, leading to an increase in the cost of other goods such as iron and steel, fertilizer, and cement, leading to inflation Thus, the price of oil increased by 72%, and this is also the highest increase ever up to now b) Food prices are constantly increasing Because of the process of global climate change, natural disasters and epidemics occur in a row, along with years of strong economic growth in the world - the years when the industrialization process is accelerated, making the land area used for cultivation and husbandry is limited Consequently, food production is continuously falling sharply while demand remains constant and the second reason is high energy prices Many countries switch to using cereals as biofuels, which makes selling prices go up, leading to high inflation 3.3.1.2 Causing inflation by monetary theory A large amount of money was lunched into the global economy Before the continuous escalation of oil and food prices, creating a huge supply shock that pushed global inflation up The situation forced central banks to raise key interest rates to control inflation, specifically: Japan increased once from 0.25% to 0.5%/year; Euro area increased times from 3.5%-3.75%-4.0%/year; UK increase times from 5%-5.5%/year (including decrease); Sweden increased times from 3.0%4.0%/year; China increased times from 6.12 to 7.47%/year Due to high inflation, the government has implemented a tight monetary policy to keep inflation up However, that pushed up the price of fuel materials very high In the end, the banks decided to increase the money supply by putting more cash on the market However, monetary theory posits that inflation is the main cause of inflation, so the central bank increases the amount of money in circulation for saving the world economy from falling into recession by bringing trillions of dollars into the economy will push global inflation to continue to soar In which, the US alone has had to give the economy over $2.3 trillion from 8/2007 to 04/2008, including $800 billion in cash to save the banking system, the European Central Bank, Japan, and the UK also have to brought a large amount of money to save the economy as well as the banking system; along with some central banks having to cut interest rates from August 2007 onwards such as the US, UK, Canada However, the question is, in the same world context, why other countries such as China, Thailand, and Malaysia have lower inflation than Vietnam's? So, Vietnam's inflation rate has increased in recent times, besides world factors, what other causes are there? 3.3.2 The main causes from the internal of Vietnam's economy 3.3.2.1 Causing inflation by cost-push a) Increasing in price of production In the context of rising global inflation, the price of most of Vietnam's imported goods groups increased sharply such as gasoline, iron and steel, fertilizers, pesticides which are main input materials of production Although the government tried to control gasoline prices, from the beginning of 2007 to the end of the first quarter of August, gasoline prices had to increase times During the year 2008, there were 12 times the price of petrol was adjusted, but only times increased, the remaining 10 times decreased In general, gasoline prices increased by 38%, steel prices increased by 91 %, electricity price increased by 7.6%; coal price increased by 30%; cement price increased by 15%; fertilizer prices increased by 58% This had resulted in higher production costs b) Increasing in price of food significantly Global climate change in the world not only affects many countries but Vietnam is also heavily affected Only in October 2007, the Central region suffered from consecutive storms, while epidemics in livestock and farming such as avian influenza, blue-eared pigs, foot-and-mouth disease in pigs, yellow dwarfism in rice, etc With severe cold, harmful cold causes the supply of food - food to decrease The second reason is that the increase in world food prices has caused the price of exported rice and some other export food items such as seafood and seafood to increase, along with high production costs Therefore, it pushed up domestic food prices by 14.45% in the first three months of 2018, times higher than the increase of 4.18% in the same period of 2007, while this group has the weight of 42,85% - the largest in the basket of CPI goods It can be said to be the main reason for the strong increase in CPI 3.3.2.2 Causing inflation by monetary theory a) Fiscal policy and monetary policy continuously expanded from 2001-2006 to promote economic growth Over the past years, Vietnam's economy has continuously grown at a very high rate of over 8%, and the goal of this phase for the Government of Vietnam is to prioritize economic growth With this goal, it has encouraged "loose fiscal and monetary policies that have been implemented for many years but not strictly managed" in order to promote economic growth, and this is also a factor contributing to economic growth, causing the average inflation from 2005 to 2007 to increase over 8.01% Bank credit to the economy has increased sharply for a long time to serve the economic growth target, which is an important reason for the increase in the total means of payment in the economy Old banks extended credit by loosening lending conditions, competed with each other by reducing lending interest rates, increasing deposit interest rates in search of loan sources, transforming models, entering into joint ventures with other banks businesses and corporations to increase their charter capital, expand their network quickly beyond the capacity of management, to establish more new banks, and all banks are mainly racing to earn profits from their operations lending should make the credit of the banking system increase higher during 2007 and the first months of 2008, which is a very important cause causing great pressure to increase inflation in recent times b) Foreign capital inflows into Vietnam increased sharply Starting from the end of 2006 when Vietnam officially became a member of the World Trade Organization (WTO), along with the reforms of mechanisms, policies and investment environment, it has created favorable conditions for foreign capital flows into Vietnam increased sharply In 2007, FDI inflows increased by 20.3 billion USD in registered capital, much higher than 10.2 billion USD in 2006 According to the General Statistics Office, in the first 11 months of 2008, 1,059 FDI projects were registered signed a new contract with a committed capital of over 60 billion USD This is a very impressive figure, more than times higher than 2007 and more than times compared to 2005 FDI disbursement in 2008 also set a record of 10.1 billion USD until the end of November 2008, an increase of 44 2% over the same period in 2007 Faced with this situation, the State Bank had to provide a large amount of VND to buy foreign currencies in order to stabilize and slightly devalue the exchange rate to support exports and promote economic growth It caused the total means of payment to increase, the impact of increasing inflation 3.4 The impact of inflation on Vietnam's economy in 2008 3.4.1 Affect interest rate The first effect of inflation is the impact on interest rates We have: Real interest rate = nominal interest rate - inflation rate Therefore, when the inflation rate is high, if the interest rate is really stable and positive, the meaningful interest rate must increase according to the inflation rate In June 2008, the interest rate spiked to 15%, which is the highest interest rate since 2004 until now This is considered a consequence of the intense inflation situation at that time The increase in nominal interest rates will lead to the consequences that the economy suffers, which is an economic recession and increased unemployment 3.4.2 Affect the growth rate High inflation leads to a reduction in the growth target from 8.5% to 7%, which reduces the growth rate of cash in the society, which cannot be put into investment, causing capital stagnation, which risks causing inflation in the following cycles According to the plan of early 2008, GDP growth rate was expected to be from 8.5% to 9% Although the National Assembly had adjusted the GDP growth rate to 7% in May 2008, the actual GDP growth was 6.52 % in October and 2008’s GDP growth was only 6.23% 3.4.3 Affect purchasing power Domestic consumption in Viet Nam is showing signs of weakening, industrial production in the first month of the fourth quarter of this year increased slower than previous months, this is an opposite trend every year The value of industrial production in 10 months was estimated at 330,121 billion VND, up 12.1% over the same period in 2007, lower than the average growth rate of the first months of 12.4% 3.4.4 Affect income inequality Inflation increases income inequality The Gini coefficient (which presents Vietnam's income inequality) increased from 0.424 in 2006 to 0.434 in 2008 The reason for this increase is that inflation will reduce the purchasing power of the poor High inflation also causes people with excess money and wealth to use their money to plunder and collect goods and properties, and speculation appears, this situation further seriously imbalances the supply-demand relationship goods on the market, commodity prices also skyrocketed higher In the end, the already poor people become even more miserable They couldn't even buy essential consumer goods, while speculators scavenged the goods and became even richer Such inflation will cause disturbances in the economy and create a large gap in income and living standards between the rich and the poor 3.4.5 Affect the stock market High inflation is often considered a negative signal for the stock market because it causes borrowing costs, input costs (raw materials, labor) to increase, and lower people's living standards Most importantly, inflation will lower expected earnings growth, putting pressure on stock prices CPI in 2008 reached the highest level, the stock market also peaked and fell into a downward shock cycle 4 Solutions to control inflation in 2008 that the government had taken Firstly, the Central Bank implemented monetary tightening measures with the desire to effectively control inflation and stabilize the macroeconomy Particularly, increase Reserve Requirement times from 5% to 10% and from 10% to 11% for VND and from 8% to 10%, and from 10% to 11% for foreign currencies In addition, Increase all basic interest rates from 8.25%-8.75%, refinancing rate from 6.5%-7.5%, discount rate from 4.5%-6% 13/2/2008 Governor of the Central Bank of Vietnam issued a decision on the government bonds in VND to sell to credit institutions to withdraw money from circulation Specifically, the compulsory government bonds of over VND 20 trillion starting from 19/3/2008 with a term of 12 months, the interest rate of 7.58%; Continue to transfer about 50 trillion VND from treasury deposits to the Central Bank P (price) Additionally, the exchange rate was managed flexibly with the trading band for USD/VND exchange rate widening from ±0.75% to ±1% (10 March) and then to ±3% (7 November) in order to promote export and restrict trade and to better reflect the changes in the supply and demand for foreign currency Secondly, cut public investment and recurrent costs of budgetary agencies, strictly control the investment of state-owned enterprises, and try to reduce the proportion of budget deficit Investment from the state budget and investment by state-owned enterprises currently account for about 45% of total social investment Cutting this investment source will reduce pressure on demand, reduce the trade deficit, and contribute to improving the efficiency of the economy The Government specified the proportion of investment capital and administrative costs that must be cut and require ministries and localities to identify inefficient works of the economy that were not really necessary for suitable adjustment This will be done resolutely right in the reallocation and balance of capital Third, focus on developing industrial and agricultural production, quickly overcoming the consequences of weather and epidemics to increase food and food production At the time, The growth potential of Vietnam was still very large, especially when Vietnam is a full member of the WTO, foreign investment and private investment have increased sharply, and the export market is properly expanded, therefore, production development is the original solution, creating multi-faceted efficiency, both increasing supply for domestic and export markets, contributing to curbing inflation, reducing the trade deficit, and promoting a growth economy, without causing side effects Fourth, ensuring the balance between supply and demand for goods, boosting exports, and reducing the trade deficit Balancing the supply and demand of goods, especially those essential for the production and people's life, is a decisive premise so as not to cause price spikes and prevent speculation While insisting on implementing the market price mechanism, and eliminating subsidies through prices, in this situation, despite the high world oil prices, the Government decided:, electricity, coal, and petrol prices had not been increased; stabilized prices of cement, fertilizers, clean water, medicines, airfares and train tickets; assigned the Ministry of Finance to review and reduce fees collected from farmers In order to ensure the supply in the domestic market, maintain food security and disguise the excessive price increase of this commodity group, the Government stipulates the number of rice exports this year at million tons until the end of the third quarter in 2008, no more than 3.2 million tons The Government has also assigned the Ministry of Finance to propose a plan to increase the export tax on crude oil and study the possibility of applying export tax Fifth, thoroughly save in production and consumption In this period, waste in production and consumption was quite common in agencies and units The potential for savings in production and consumption was huge Therefore, the Government required state agencies to cut administrative spending by 10%, and businesses must review all expenditures in order to reduce costs and circulation fees The Government urged everyone, every home to thoroughly save consumption, especially fuel and energy This is a solution that both reduces pressure on demand, reduces trade deficit, and contributes to improving the efficiency of the whole social production Sixth, strengthen market management and control the observance of the state law on prices Determined not to abuse fluctuations in the market to speculate and raise prices, especially of essential commodities for production and consumption Enterprises of all economic sectors must regularly check the selling prices at their retail networks and retail agents Seventh, expand the implementation of policies on social security Facing the situation of high prices, affecting people's lives, especially in poor areas, poor households, areas affected by natural disasters, and low-income workers, the Government had advocated expanding social security policies The Government decided to increase the minimum wage by 20% for employees of state agencies, armed forces, political organizations, and socio-political organizations from 1/1/ 2008 Moreover, for workers who have undergone vocational training the prescribed minimum wage is at least 7% higher than the regional minimum wage At the same time, about 1.8 million retirees and social insurance beneficiaries have received a 20% increase in salary The Government decided to stabilize the collection of tuition and hospital fees and continue to give students university or colleges with difficult circumstances preferential loans to study Continue to export rice for the national reserve to provide it free of charge to households suffering from natural disasters and hunger Conclusion Inflation is an important macro issue that is of interest to all countries in operating the economy, especially Vietnam Inflation is a factor that directly affects socio-economic life and business activities Therefore, calculating inflation, controlling and minimizing negative impacts of inflation is an important and urgent task, contributing to helping the country's economy overcome all difficulties and challenges The situation of epidemics, trade wars, and political conflicts in the world are taking place continuously in sensitive military areas, making inflation in the world and in Vietnam especially high Therefore, the essay has posed problems, causes and effective solutions to curb inflation Since then, the State and Government can understand and solve inflation well and can restore Vietnam's economy, helping Vietnam continue to develop international integration More from: Macro economics ECO02H Học viện Ngân hàng 74 documents Go to course Chapter Macroeconomics -… Macro economics 100% (6) THAM KHAO CAU TRA LOI 05 CAU TU LUAN… Macro economics 100% (5) BT Macro Chapter 21 Macro economics 100% (2) MACRO ECONOMICS - KINH TẾ VĨ MÔ Macro economics 100% (1) More from: Bùi Thị Hồng Ngọc 999+ Học viện Ngân hàng Discover more GIAO TIẾP Trong KINH Doanh Khởi kinh doanh KINH TẾ Chính TRỊ MÁC- Lênin kinh tế trị 100% (3) Bùi Thị Hồng Ngọc MINI TEST 05 tiếng anh 43 100% (3) 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