+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

AN EMPIRICAL ANALYSIS OF THE IMPACT OF MONETARY POLICY ON ECONOMIC DEVELOPMENT IN NIGERIA (1985–2011)

  • Type:Project
  • Chapters:5
  • Pages:52
  • Format:Microsoft Word
(Economics Project Topics & Materials)

AN EMPIRICAL ANALYSIS OF THE IMPACT OF MONETARY

POLICY ON ECONOMIC DEVELOPMENT IN NIGERIA (1985–2011) 

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

One of the major issues which have occupied the mind of government for years is the impact of monetary policy as a tool for price stability in Nigeria. Despite the lack consensus amongst the economy, there is remarkable strong agreement that monetary policy as an economystabilizing measure in Nigeria refers to the persistence rise in the general price level.

Monetary policy is one of the macroeconomic policies available for managing the economy. It is however important today because its effects on economic aggregates such as price, output, interest rates and exchange rates. In most countries, the central bank is saddled with the responsibility of conducting monetary policy. In the case of Nigeria, the responsibility entirely lies with the Central Bank of Nigeria (CBN). The discretionary control of the money stock by the monetary authority involves the expansion and contraction of money, influencing interest rate to make money cheaper or more expensive depending on the prevailing economic situation.

1.2    STATEMENT OF THE PROBLEM

The monetary policy implemented in the economy over the past years has been detrimental and inconsistent with developmental needs of the economy (Apata J.T, 2007). This concern has exerted pressures on the monetary authorities in Nigeria to re-examine and re-evaluate their monetary policies with the view of finding possible solutions. As a result of this, the Structural Adjustment Programme (SAP) as introduced in Nigeria in 1986 in order to correct the structural imbalances in the economy and to liberalize the financial system.

Despite various actions used by the monetary authorities in administering monetary policy in Nigeria, there are still limits to the effectiveness of monetary policy. There has been a wide discrepancy between target and outcome due to the fact that the central bank has not been able to achieve the various objectives it set out for itself. For instance, there has been a problem hitting inflation target. The inflation target in 2008 was 7% but the performance was about 19%.

Nigeria needs an effective, efficient, sound and consistent monetary policy that has a positive effect on interest rate, employment and real output, so as to minimize the economic problems disturbing Nigeria as a developing country

1.3    RESEARCH QUESTIONS

What is the effect of monetary policy on price stability in Nigeria?

To what extent do the instruments of monetary policy control inflation in Nigeria?

What are the contributions of monetary policy towards developing

Nigeria?

1.4    OBJECTIVES OF THE STUDY

This study seeks to achieve the following objectives;

I.             To determine the impact of monetary policy on inflation in

Nigeria.

II.           To empirically examine the effectiveness of monetary policy on economic stability in Nigeria.

III.        To analyze the contributions of monetary policy towards promoting growth and development of the Nigerian economy.

1.5    RESEARCH HYPOTHESIS

The hypothesis to be tested in the course of this research work is stated below;

H1 = Monetary policy has significant impact on inflation in Nigeria. 

H2 = Monetary policy has no significant impact on inflation in Nigeria.

1.6    SIGNIFICANCE O THE STUDY

This study is significant in the following ways;

I.             It would provide an objective view of the effectiveness of the monetary policy in Nigeria.

II.           It would provide an economic basis upon which to examine the effect of monetary policy on the Nigerian economy.

III.        It would provide policy recommendations to the policy makers on ways to make the Nigeria economy vibrant through the monetary policy.

1.7    SCOPE OF THE STUDY / LIMITATION OF THE STUDY

This study will focus on major growth and development components which are vital parts of monetary policy. The study will also empirically examine the effectiveness of monetary policy in the Nigerian economy. Factors that affect smooth execution of the project include inadequate finance and short time.

Share This

Details

Type Project
Department Economics
Project ID ECO0391
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 52 Pages
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Economics
    Project ID ECO0391
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 52 Pages
    Format Microsoft Word

    Related Works

    AN EMPIRICAL ANALYSIS OF THE IMPACT OF MONETARY POLICY ON ECONOMIC DEVELOPMENT IN NIGERIA  (1985–2011)  CHAPTER ONE INTRODUCTION 1.1    BACKGROUND OF THE STUDY One of the major issues which have occupied the mind of government for years is the impact of monetary policy as a tool for price stability in Nigeria. Despite the lack consensus... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1            Background of the study However, monetary policy as a technique of economic management to bring about Sustainable economic growth and development has been the pursuit of nations and formal articulation of how... Continue Reading
    CHAPTER ONE  INTRODUCTION 1.1       Background to the Study Macroeconomic policy consists of the actions aimed at inducing appropriate changes in macroeconomic aggregates such as output, employment and the price level. The major components of macroeconomic policy include fiscal, monetary, debt management, exchange rate and prices and... Continue Reading
    IMPACT OF MONETARY POLICY OF ECONOMIC GROWTH IN NIGERIA PROPOSAL The Nigeria economy has been experiencing over the years the problems of unemployment, price level instability, lack of sustainable economic growth, balance of payment disequilibrium, inability to mobilize domestic saving and unsatisfactory expansion of domestic output. This has lead... Continue Reading
    The Impact Of Monetary Policy On Economic Growth In Nigeria ABSTRACT This study examined the impact of monetary policy on economic growth in Nigeria from 1979-2008. The study adopted error correction model specification. Data was collected from CBN statistic bulletine, the statistical techniques with the aid of P.C. give software package. The... Continue Reading
    Evaluation Of The Impact Of Monetary Policy On Economic Growth And Inflation In Nigeria ABSTRACT Generally, monetary policies seek to achieve relative macroeconomic stability. Based on countries’ experience especially that of Nigeria on the role of monetary policy in controlling economic stability, this study examines the efficacy of monetary... Continue Reading
    ABSTRACT The study examined the impact of monetary policy in stabilizing the Nigeria economy. In the model specified inflation is the regress while cash research requirement, liquidity ratio, money supply, minimum rediscount rate, interest rate are the regressors. The government employs a deliberate manipulation of cost and availability of credit... Continue Reading
    ABSTRACT The pivot of this study is an investigation into the causality between economic growth and stock market in Nigeria, one should note that although this study has been carried out in other countries, it is a relatively virgin ground for research in Nigeria. In... Continue Reading
    . ABSTRACT The study examined the impact of monetary policy in stabilizing the Nigeria economy. In the model specified inflation is the regress while cash research requirement, liquidity ratio, money supply, minimum rediscount rate, interest... Continue Reading
    BSTRACT The study investigates the impact of government expenditure on economic growth of Nigeria from the period 1980-2011. The objective was set to address the problem of utilization of revenue targeted to improving the economic condition of Nigeria. The review of theoretical and empirical literature provided a basis for the selection and... Continue Reading