EFFECTIVENESS OF MONETARY POLICY AS A TOOLS FOR CONTROLLING INFLATION IN NIGERIA (1980-2004).
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
EFFECTIVENESS OF MONETARY POLICY AS A TOOLS FOR CONTROLLING INFLATION IN NIGERIA (1980-2004).
ABSTRACT
This study aims to empirically examine the effectiveness of monetary policy as a tool for managing inflation in Nigeria.
To study this, hypotheses were developed as follows:
Ho: Monetary policy initiatives implemented over the years have had no meaningful influence on inflation control in Nigeria.
Hello: Monetary policy initiatives implemented over the years have had a substantial impact on inflation management in Nigeria.
In analysing secondary data on inflation and money supply from 1980 to 2004, the researcher used the linear regression approach and the ordinary least squares (OLS) technique. The researcher was then submitted to t-ratio and f-tests, the results of which were validated.
I. Monetary policy measures implemented by the monetary authorities between 1980 and 2004 were ineffective in managing inflation.
2. Quick monetary measures for inflation control are not
exist.
Based on the above findings, the following are the policy recommendations:
In order to eradicate inflation, inflationary expectations must be eliminated.
The government should focus more on productive investment to decrease inflationary pressure in Nigeria.
The monetary authorities should be vigilant in their attempts to keep inflation in line by implementing efficient monetary and fiscal policies.
To guarantee that monetary policies are effective, the government should oversee their execution.
It is thought that if the monetary authorities adopt the aforementioned proposal, effective results will be obtained.
Chapter one
1.0 Introduction
1.1 Background of the Study
Nigeria remains a clear reflection of the third world economy, with the growing economy having some working machinery, monetary and fiscal policies aimed at maintaining a balance in the overall economy so that growth and development, which is the ultimate goal of every economy, can be realised.
Monetary policy is a set of policies aimed to control the value, supply, and cost of money in an economy in accordance with the level of economic activity.
Monetary policy is a deliberate effort by monetary authorities to control the monetary supply and credit conditions in order to achieve specific broad economic goals.
The primary goals of monetary policy are to contain inflation and maintain a strong balance of payment position for the country in order to protect the external value of the national currency.
Need help with a related project topic or New topic? Send Us Your Topic