DOES MONETARY POLICY INFLUENCE ECONOMIC GROWTH IN NIGERIA?
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 5
Abstract
This study examines the impact of monetary policy on economic growth in Nigeria.The study uses time-series data covering the range of 1975 to 2010.The effects of stochastic shocks of each of the endogenous variables are explored using Error Correction Model (ECM). The study shows that Long run relationship exists among the variables. Also, the core finding of this study shows that inflation rate, exchange rate and external reserve are significant monetary policy instruments that drive growth in Nigeria .It is therefore recommended that the establishment of primary and secondary government bond markets that can also increase the efficiency of monetary policy and reduce the government’s need to rely on the central bank for direct financing.
Authors and Affiliations
Ismail O. Fasanya| Department of Economics, University of Ibadan, Ibadan, Nigeria, Adegbemi B. O Onakoya| Department of Economics, Tai Solarin University of Education, Ijagun, Nigeria, Mariam A. Agboluaje| Department of Economics and Financial Studies, Fountain University, Osogbo, Osun State, Nigeria
Keywords
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