b. internal causes:-Inefficient fiscal policy is a very important cause of inflationary disease in our country. To support economic development, the Government has planned to spend to upgrade the country's infrastructure and continually overspending the budget in years 5% of GDP. Investments for economic growth is essential, but inefficient investment, investment, causing huge waste for long periods is dangerous for the economy, while the wages of the workers, who are public servants of the State is too low compared with the price. The formulation, appraisal, approval of the project, total projects and technical designs too slow, cumbersome and complex procedures. The spending is not effective, the corruption, the increase has affected the public's confidence in the mechanism and the my operator. The party and the State, we have seen and are adjusted, such as the establishment of anti-corruption bodies, but need more drastic.-In 2007, and in early 2008 the State actively done adjusted according to market prices for some commodities, basic materials such as electricity, petroleum, coal, ... affect the price increases of other goods.-The 2007 monetary policy also has some issues to be considered, the money supply growth in 2005 was 23.4%, in 2006 was 33.6%, 2007 was 53.8%, a total of 3 years M2 money supply increase of 134.2%, while GDP rose 25.09% just three years. Huge difference, will surely take up domestic prices, and in late 2007, early 2008 it develops strong is due to resonance by the international inflation and natural disasters.
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