Vietnam International Political Economy

The International Monetary Fund has expressed concern over Vietnam’s fall in foreign exchange reserves according to The Age.

With only 2 1/2 months of reserves, Vietnam risks a balance of payments crisis which could significantly damage the Vietnam economy.

The key driver blamed by the IMF on the increased balance of payments risk is the easing of monetary and fiscal policy by the Vietnam government as a means to stimulate the Vietnam economy in the wake of the great recession.