Omotor, Douglason G. (2009): The Nigerian economy and monetary policy: Some simple empirics.
Download (400kB) | Preview
The paper sets out to determine the impact of monetary policy on the Nigerian economy during the post-reform period using annual series data (1986 – 2006). Trend discussion of some basic macroeconomic indicators on the Nigerian economy among others reveal that (a) the Central Bank of Nigeria is instrument independents and not goal independent; and (b) fiscal dominance and policy inconsistencies are some constraints that undermine the efficacy of monetary policy. Results from the simple empirics on monetary policy shocks hold it that monetary policy is not completely impotent in influencing economic activities and particularly that monetary policy shocks affected prices more both in the short-run and long-run than other indicators. This paper posits that monetary policy formulation may concentrate more on the use of Treasury bill as an instrument of inflation-targeting in Nigeria.
|Item Type:||MPRA Paper|
|Original Title:||The Nigerian economy and monetary policy: Some simple empirics|
|Keywords:||Monetary policy; Reforms; Central Bank; Fiscal dominance; Monetary policy shocks; Nigeria|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
|Depositing User:||Douglason G. Omotor|
|Date Deposited:||08. Jun 2011 07:53|
|Last Modified:||12. Feb 2013 20:36|
Ajayi, S.I. and O.O. Ojo (1979) Money and Banking. London: George Allen and Unwin.
Bernanke, B. and A. Blinder (1992) “The Federal Fund Rate and the Channels of Monetary. Transmission”. American Economic Review. 82 : 901-21.
Bernanke, B.S and M. Gertler (1995) “Inside the Black Box: The Credit Channel of Monetary Policy Transmission Journal of Economic Perspectives 9(4):27-48.
Central Bank of Nigeria (2006) Statistical Bulletin Volume 17, Abuja: Central Bank of Nigeria.
Fischer, S. (1994) Modern Central Banking in: The Future of Central Banking. Tercentenary Symposium of the Bank of England: Cambridge University Press.
Friedman, M. and A. Schwartz (1963) Monetary History of the United States: 1867-1960. Princeton: Princeton University Press.
Gbosi, A.N. (1993) Monetary Economics and the Nigerian Financial System. Port Harcourt: Pam Unique Publishing Co. Ltd.
King, R.G. and M.W. Watson (1992) “Testing the Long Run Neutrality” Federal Reserve Bank of Richmond Economic Quarterly. 83(3).
Lipsey, R. (1982) An Introduction to Positive Economics London: ELBS and Weidenfeld and Nicolson.
Masha, Iyabode (2002) The Dynamics of Money, Output and Prices in Nigeria: Some Neutrality Propositions using the Vector Error Correction Methodology”. CBN Economic and Financial Review. 40(2):29-60.
Nnanna, O.J. (1999) Policy Options for Improving the Efficiency of the Nigerian Payment System Bullion 23(2).
Nnanna, O.J. (2001) “Monetary Policy Framework in Africa: The Nigerian Experience”. Paper Presented at the 2001 South African Reserve Bank Conference.
Nnanna, O.J. (2002): “Monetary Policy and Exchange Rate Stability in Nigeria”. Proceedings of a One-Day Seminar of the Nigerian Economic Society. pp1 -21.
Ojo, M.O. (2000). The Role of Autonomy of the Central Bank of Nigeria (CBN) in Promoting Macroeconomic Stability.
Romer, C. and D. Romer (1990) “New Evidence on Monetary Transmission Mechanism”.Brookings Papers on Economic Activity. 1: 149-214.
Romer, C. and D. Romer (1994) “What Ends Recession?” In Stanley, F. and J. Rotemberg (eds.) NBER Macroeconomics Annual. 9:13-57.
Shostak, Frank (2004), The Myth of Shock-Free Monetary Policy. http://mises.org/articles.aspx?Author=115 [28/10/2008],
Teriba, O. (1973). “Instruments of monetary Control: The Nigerian Experience”. Teriba, O. and V.P. Diejomaoh (eds.) Money, finance and Development: Essays in Honour of Obasanmi Olakanpo. The Nigerian Economic Society, Ibadan: University Press. Pp 5-41.