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 and money to achieve this economic objective. The CBN being the sole regulatory body combines measures designed to regulate the value, supply and cost of money into economic activities. This is what we call monetary policy (CBN Brief 1996/03). It is against this background that the research is carried out to ascertain the effect in the use of monetary policies such as money supply, interest rate, liquidity ratio, minimum rediscount rate, inflation rate and cash reserve requirement to stabilize the Nigeria economy. Also to determine the relationship that exists between the independent variables and dependent variable from the secondary data for the period under study (1980 - 2010). The statistical technique that will be used for this analysis is the ordinary least square technique, with the aid of PC five 8.00 software package. It has been identified that the major problem militating against the poor performance of monetary policy instruments in stabilizing the economic in Nigeria is time – lags which involves policy employed to take many months to achieve its full effects. This research recommends that there should be a reduction in the cost of production and increase the exportation in order to achieve the objectives of naira devaluation in Nigeria and also, central banks should be independent and should be able to achieve its inflation targets and the stabilization of growth rate in money supply.
TABLE OF CONTENTS Title page - - - - - - - - - - i Certification page - - - - - - - - ii Dedication - - - - - - - - - - iii Acknowledgement - - - - - - - - iv Abstract - - - - - - - - - - v Table of contents - - - - - - - - - vi CHAPTER ONE 1.1 Background of the study - - - - - - 1 1.2 Statement of problem - - - - - - 3 1.3 Statement of objectives - - - - - - 3 1.4 Statement of hypothesis - - - - - - 4 1.5 Significance of the study - - - - - - 5 1.6 Scope and limitation of the study - - - - - 5 1.7 Definition of terms - - - - - - - 6 7 CHAPTER TWO 2.0 Literature Review - - - - - - - 7 2.1.0 Theoretical literature - - - - - - - 7 2.1.1 The Keynesian view on monetary policy - - - - 9 2.1.2 The classical view on monetary - - - - - 14 2.1.3 The monetarist view of monetary policy - - - - 16 2.2.0 Meaning, instruments and objectives of monetary policy - - 21 2.2.1 Instruments of monetary policy - - - - - 25 2.2.2 Open market operation (OMO) - - - - - 25 2.2.3 Reserve requirement ration - - - - - - 26 2.2.4 Discount rate - - - - - - - - 27 2.2.5 Selective credit controls - - - - - - 28 2.2.6 Moral suasion - - - - - - - - 28 2.3.0 Objectives of monetary policy - - - - - - 29 2.4.0 Monetary policy indicators - - - - - - 30 2.5.0 Monetary policy targets and implication to the Nigerian Economy- 31 2.6.0 Factors that have militated against the impact of monetary policy in Nigeria - - - - - - - - -32 2.6.1 Instability of the financial sector - - - - - 32 2.6.2 Poor state of Economic infrastructure - - - - 33 2.6.3 Non-Harmonization of monetary and fiscal policy - - - 33 2.6.4 Increase in government expenditure - - - - 33 2.6.5 Equate rate bank - - - - - - - 34 2.7.0 The impact of monetary policy during the depression Era of structural adjustment programme (SAP) - - - 34 2.8.0 Debt management as an integrated part of monetary policy - 36 2.9.0 The impact of monetary policy on the economy - - - 38 2.10.0 Economic stabilization - - - - - - 38 2.11.0 Empirical literature review - - - - - - 40
. 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
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 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 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 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 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
(1986-2011) CHAPTER ONE 1.1 BACKGROUND OF THE STUDY Since its establishment in 1959, the Central Bank of Nigeria (CBN) has continued to play the traditional role expected of a central bank, which is the regulation of the stock of money in such a way as to promote economic... Continue Reading
ABSTRACT This paper enables the researcher to examine monetary policy measure as an instrument of economic stabilization. In doing this, the Ordinary Least Squares Method (OLS) is used to analyze data between 1981 to 2011. An overview of the results of the Ordinary Least Squares... Continue Reading
ABSTRACT MONETARY POLICY MEASURES AS INSTRUMENTS OF ECONOMIC STABILIZATION IN NIGERIA In general, monetary policy refers to the combination of measures designed to regulates the value, supply and cost of money in an economy in cognizance with the level of economic activity. An express supply of money which will result in an excess demand for goods... Continue Reading
ABSTRACT The purpose of this project work is based on the relative performance of monetary policy in the Nigerian economy. This work discussed the meaning of monetary policy is as combination of measures designed to regulate the value, supply and cost of money in an economy in consonance with the expected value of economies activities. The study... Continue Reading