ABSTRACT
Monetary policy has a central role in macro-economic management. Therefore this work tries to asses the effectiveness of CBN monetary policy in the control of unemployment in Nigeria (2000-2011). The effectiveness of any policy is measured by the external it tries to achieves its objectives. The assessment of the policy was made using one out or the three key policy objectives which is unemployment. In achieving the above objectives, information was sourced from both primary and secondary data. Others issues whose facts were already documented were collected and analyzed using simple statistical tools, determined by the use of regression and correlation. Descriptive data on unemployment rate, interest rate, reserve, ratios and OMO formed the variables. Findings made include among other, that direct credit control will have no impact upon employment when repercussion effects are ignored because of the automatic and equal loss of foreign exchange reserves and there is also a positive relationship between relationship between open market operation and unemployment and the researcher discovered that the policies adopted by CBN in controlling unemployment were not effective as a result of political instability bribery and corruption and based on that various recommendations were made.
TABLE OF CONTENTS
Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi
CHAPTER ONE
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the study 7
1.3 Objectives of the study 8
1.4 Research questions 9
1.5 Research hypothesis 10
1.6 Significant of the study 11
1.7 Scope and limitation of the study 12
1.8 Definition of terms 12
References 13
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction 16
2.2 Brief history of unemployment in Nigeria 16
2.2 What is monetary policy 19
2.3 The instrument of monetary policy 21
2.4 Objectives of monetary policy 22
2.5 Open market operational and unemployment 25
2.6 Interest rate 31
2.7 Interest rate and unemployment 33
2.8 Determination of interest rates 34
2.8.1 Impact of market forces on interest 38
2.9 Cash reserve requirement and reserve
requirement (tool used by CBN to control
unemployment 41
2.9.1 Liquidity ratio 47
2.10 Impact of direct credit control in controlling unemployment 51
2.10.1Credit guidelines 54
References 61
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction 62
3.1 Source of primary data 62
3.2 Source of secondary data 63
3.3 Collection of data 63
3.4 Method of data analysis 63
3.5 Estimate of model 64
3.6 Evaluation of the model 65
3.7 Co-effiency of determination 66
3.8 The standard error test 67
References 68
CHAPTER FOUR
4.0 PRESENTATION AND DATA ANALYSIS 69
4.1 Introductions 69-86
CHAPTER FIVE
SUMMARY OF FINDINGS 87
5.2 Conclusion 89
5.3 Recommendation 90
Bibliography 94
