The Impact of Monetary Policy and Fiscal Policy on Budget Deficit in Vietnam: Based on Ricardian Equivalent Theory
Keywords:budget deficit, deposit interest rate, corporate tax rate
Vietnam is an ASEAN country where it is a Royal country and president as Prime Minister. From time to time when Vietnam's government was controlled by the same party, the Communist Party of Vietnam, it is suspected that the Ricardian Equivalent theory of budget deficit will be in line and positively influential? The study used research data from 2000 to 2018, with independent variables such as deposit rates as monetary policy variables and corporate tax rates as fiscal policy variables. The data analysis method uses multiple linear regression time series. The result is known that independent variables such as deposit rates and corporate tax rates have a significant impact on the deficit in Vietnam, so Ricardian Equivalent theory is evident in Vietnam.