Does Monetary Policy Influence Economic Growth in Nigeria?

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 relat...

Full description

Saved in:
Bibliographic Details
Published in:Asian economic and financial review 2013-05, Vol.3 (5), p.635
Main Authors: Fasanya, Ismail O, Onakoya, Adegbemi BO, Agboluaje, Mariam A
Format: Article
Language:English
Subjects:
Central banks
Cointegration analysis
Developing countries
Economic activity
Economic growth
Error correction & detection
Fiscal policy
Foreign exchange rates
GNP
Gross National Product
Inflation
Interest rates
Interest rates-deposits
LDCs
Literature reviews
Manufacturing
Monetary policy
Performance evaluation
Puzzles
Studies
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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. [PUBLICATION ABSTRACT]
ISSN:2305-2147
2222-6737