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Please use this identifier to cite or link to this item: http://bsuir.bsum.edu.ng:8080/jspui/handle/11409/545

Title: MONETARY POLICY AND THE PERFORMANCE OF THE NIGERIAN ECONOMY
Authors: ATEATA, KONGO AARON
Keywords: MONETARY POLICY, PERFORMANCE
NIGERIAN ECONOMY
Issue Date: Aug-2019
Publisher: NONE
Citation: NONE
Abstract: This study titled “Monetary policy and the performance of the Nigerian economy” premised that the essence of monetary control is to curve real demand in the economy. The research believed the scant, if any knowledge on impact of monetary policy on disaggregated economic growth, and on government demand was a problem. The study took the objective therefore to find the impact of monetary policy on the Hicksian growth disaggregates of investment, consumption, government and net export demand. Employing the exploratory research methodology, the research anchored on the theories of CC-LM and Tailor Rule. Variables in dimensions of monetary policy considered interest rate, broad money supply, exchange rate, bank credit and inflation. Secondary data on these variables were collected from National Bureau of Statistics, International Financial Statistics, but more from The Central Bank of Nigeria’s Statistical Bulletin of various years. This data was analysed using Structural Vector Autoregression (SVAR) framework. Result of the analysis found monetary policy impact on the performance of the Nigerian economy in the short run and in the long run. Short run monetary policy shocks to economic growth disaggregates fades away for long run equilibrium at various speeds. Also, different monetary policy channels impact on the growth sectors in various negative and positive directions and dimensions. The corroboration of variance decomposition with impulse response function established that exchange rate leads transmission of monetary policy effects to the real private sector in Nigeria. Conversely, credit leads the monetary policy impulses to curve real public sector demand. The study accordingly concludes that, led by exchange rate, monetary policy significantly impacts on the performance of the Nigerian economy. Hence, it recommends exchange rate in front of the monetary policy mix to achieve targets in the Nigerian economy.
URI: http://bsuir.bsum.edu.ng:8080/jspui/handle/11409/545
Appears in Collections:Economics

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