Impact Of Monetary Policy On The Nigeria Economy.

ABSTRACT

The study examined the impact of monetary policy on the Nigerian economy. Multiple regression of ordinary least square (OLS) method of analysis was used for the analysis, and the result from the study revealed the following; that monetary policy rate had negative but significant impact on the gross domestic product in Nigeria, while cash reserve ratio had positive and significant impact on gross domestic product in Nigeria. The study therefore, concluded that monetary policy had significant impact on the Nigerian economy. Based on the findings the study hence recommended the following; 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 Nigeria, and that the Nigerian monetary authorities should give priority attention to cash reserve ratio (CRR) monetary policy tool as it will produce a more desired result in terms of stabilization of the Nigerian economy.

TABLE OF CONTENTS

Title Page ﾿ i 

Dedication ﾿ ii

Acknowledgement ﾿ iii

Declaration ﾿ iv

Certification ﾿ v

Table of Contents ﾿ vi

List of Tables ﾿ vii

Abstract ﾿ viii

CHAPTER ONE: INTRODUCTION

1.1. Background of the Study ﾿ 1

1.2 Statement of the Problem ﾿ 3

1.3. Objectives of the Study ﾿ 4

1.4. Research Questions ﾿ 5

1.5. Research Hypotheses ﾿ 5

1.6. Significance of the Study ﾿ 5

1.7. Scope of the Study ﾿ 7

1.8. Definition of Terms ﾿ 7

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework ﾿ 10

2.1.1. Concept of Monetary Policy and Economic Growth ﾿ 10 

2.1.2. Instruments of Monetary Policy ﾿ 12 

2.1.3. Monetary Policy Target and Implication to the Nigerian Economy ﾿ 16

2.1.4. Framework of Monetary Policy in Targeting Inflation in Nigeria. ﾿ 17

2.1.5. Factors that have Militate against the Effectiveness of  

          Monetary Policy in Nigeria ﾿ 19 

2.1.6. Impact of Monetary Policy on  the Nigeria Economic Growth ﾿ 20

2.2 Theoretical Framework ﾿ 21

2.2.1. Classical Monetary Theory ﾿ 21

2.2.2. Keynesian Theory ﾿ 22

2.1.3 Monetarist Theory ﾿ 22

2.3. Empirical  Review ﾿ 23

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design ﾿ 31 

3.2 Area of the Study ﾿ 31

3.3 Population  & Sample Size ﾿ 31

3.4 Sources of data ﾿ 32 

3.5. Model specification ﾿ 32

3.6. Techniques Analysis ﾿ 33

3.7. Description of Variables ﾿ 33

3.7.1. Dependent Variable: GDP ﾿ 33

3.7.2. Independent Variables ﾿ 33

3.8 Decision rule ﾿ 34

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULT

4.1 ﾿ Data presentation ﾿ 35

4.2 ﾿ Regression Analysis and interpretation of Result ﾿ 36

4.3 ﾿ Test of Hypotheses ﾿ 36

4.4 ﾿ Discussion of findings ﾿ 38

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 ﾿ Summary of Findings ﾿ 41

5.2 ﾿ Conclusion ﾿ 41

5.3 ﾿ Recommendations ﾿ 41

           References ﾿