THE EFFICACY OF MONETARY POLICY AS AN INSTRUMENT FOR CONTROLLING INFLATION ON NIGERIA ECONOMY
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
The Nigerian economy is aiming to have the sustainable growth path. Through the International Monetary Fund (IMF) the government can adopt the comprehensive Structural Adjustment Program (SAP). Nigeria has a structural and sectoral macroeconomic policy reform and the main strategies were (a) the liberalization of the external trade and payment systems, (b) the adoption of a market-based exchange rate for the domestic currency ─ Naira, (c) the elimination of price and interest rate controls, and (d) the reliance on market forces as the major determinants of economic activity (Owoye & Onafowora, 2007).The market reform in the financial sector such as the banking system can use the monetary control and instruments for implementing monetary policy in Nigeria. In any countries across the globe, the fiscal and monetary policies seek at achieving relative macroeconomic stability. The monetary policy framework in Nigeria is more than the objective of monetary policy is price and exchange rate stability. The monetary strategy in the inflation management is based on the view that inflation is essentially a monetary phenomenon. The Nigerian economy targets the money supply and its growth can be the main objective of the price stability. In order to promote the appropriate methods in monetary policy, the supply growth is firstly considered in targeting the inflation. The study examined the efficancy of monetary policy in controlling inflation in Nigeria. In the model specified, inflation is the regress and while cash reserved requirement, liquidity ratio, money supply, minimum rediscount rate and interest rate are the regressor. Data was collected from CBN statistical Bulletin for the period 1970 – 2009. The statistical techniques used for the analysis is the ordinary least square technical with the aid of E-view 5.0 software package. The research indicates that monetary policy adopted in Nigeria within the period under review failed to influence the inflation rate. It has been identified that the major problem militating against the poor performance of monetary policy instrument in controlling inflation in Nigeria is time lags involved which makes any policy employed to take many months to achieve its full effect.
Related Project Materials
THE IMPACT OF NIGER DELTA CRISIS ON NIGERIAN’S NATIONAL SECURITY
BACKGROUND OF THE STUDY
In 2002, an international observation proclaimed the Niger Delta as one of the most volatile reg...
USE OF INFORMATION AND COMMUNICATION TECHNOLOGY IN TEACHING OF VOCATIONAL SUBJECTS IN POLYTECHNIC
ABSTRACT
This study was intended to evaluate the use of information and communication technology in teaching of vocation...
EFFECT OF FIELD TRIP METHOD ON STUDENT ACHIEVEMENT IN DEKIWA LOCAL GOVERNMENT AREA OF KOGI STATE
ABSTRACT
The study investigated the effect of field trip method on student achievement in dekiwa local governm...
PRODUCTION OF ALKYD RESIN USING WATER MELON SEED OIL (CITRULLUS LANATUS)
ABSTRACT
Alkyd resin was prepared using the seed oil of water melon (Citrullus Lanatus). The extraction of the...
EFFECT OF AUTOMATED CLEARING SYSTEM ON BANK PERFORMANCE IN BANKING
GENERAL DESCRIPTION OF THE STUDY
The cheque clearing system is the means whereby bank exchange cheque d...
EFFECT OF COVID-19 ON THE ACADEMIC PERFORMANCE OF SECONDARY SCHOOL STUDENTS
ABSTRACT
The study was designed to examine the effect Of Covid-19 on the academic performance of secondary students in N...
EVALUATION OF THE IMMUNIZATION STATUS OF CHILDREN IN A RURAL SUBURB OF ANAMBRA STATE
Abstract
Poor immunization coverage especially in rural areas has led to a high burden of vaccine preventable diseases i...
AN EXAMINATION ON THE IMPACT OF DIGITAL MARKETING AS A KEY DRIVER OF SALES AMONG SMALL AND MEDIUM SCALE ENTERPRISES
BACKGROND OF THE STUDY
It is the goal of any enterprise, regardless of size, level of complexity, owner...
NEW MEDIA TECHNOLOGY USE PATTERNS IN NEWSROOMS- A STUDY OF SELECTED BROADCAST STATIONS IN SOUTH EAST, NIGERIA
Background to the Study
Broadcast media thrived globally before the coming of the internet and new media as a very significant medium for...
ANTIBACTERIAL ACTIVITY OF HELIANTHUS ANNUUS SEEDS EXTRACT ON SALMONELLA SPECIES AND ESCHERICHIA COLI
ABSTRACT Medicinal plants contain active ingredients with therapeutic values. Helianthus annuus L (Asteraceae) commonly referred to as “sunfl...
