ARE THERE ANY FEASIBLE ANTI-CYCLICAL POLICIES FOR NIGERIA IN THE ERA OF GLOBAL ECONOMIC CRISIS?
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Covenant University, 2010
Abstract
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This paper is an empirical examination of the role of Nigerian
domestic macroeconomic policies in managing the pro-cyclical
effects of externally generated' boom-burst cycles. It applies Vector
Autoregression (VAR) framework on Nigerian quarterly data from
1970: I to 2006:4 and estimates the responses of monetary and fiscal
measures to unanticipated shocks over different horizon. The paper
concludes that the Nigerian economy is far from converging
towards a sustainable equilibrium in the short run but analysis
carried far into the horizon indicates that the variables converge
uniformly to the steady state equilibrium. The paper suggests that
both monetary and fiscal policies could be used to address the
current global crisis from domestic perspective. However,
authorities must use the right mix of these policies to avoid conflicts.
Keywords
H Social Sciences (General), HB Economic Theory, HC Economic History and Conditions