The effectiveness of monetary policy in achieving economic growth: the case of Nigeria, 1980-2009
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This study investigates the Effectiveness of Monetary policy in achieving Economic Growth: The
case of Nigeria for the period 1980-2009.
Monetary policy has become a major tool in economic management in Nigeria because of the dominance of
the financial sector in its economic activities. This study employed the Ordinary Least square method in
carrying out the research. From the various test carried out it was find out that monetary policy rate (MPR)
(formerly minimum rediscount rate (MRR)),exchange rate and treasury bill investment have negative impact
on GDP. Also it is seen that during the period under review that the manipulation of monetary policy
instruments have not proven to be effective in achieving economic growth. It is therefore recommended that
the monetary authorities should strengthen the working mechanism of the monetary policy instruments to
ensure their success in helping to achieve the desired macroeconomic growth. In addition the policy
instrument should be a well coordinated optimal mix of instruments.
Keywords
HB Economic Theory, HG Finance