Economics at your fingertips  

Impact of Monetary Policy Shocks on the Output Gap in Nigeria

Igoni Pedro and Ganiyat Adejoke Adesina-Uthman

International Journal of Economics and Finance, 2022, vol. 14, issue 9, 38

Abstract: The paper aims to answer the question on whether the output gap is influenced by the transmission of monetary policy shocks. For Nigeria, using database of time series data from the Central Bank of Nigeria and the National Bureau of Statistics (2002M01 to 2018M12), we estimate time series models using Generalized Method of Moments, Autoregressive Distributed Lag and Differenced Ordinary Least Squares estimation techniques. We analyze the empirical results of the 3 considered approaches and the impact of CBN development finance and the naira exchange rate shocks on output gap are found significant. The results, however, show that inflation and interest rate is insignificant in the determination of the output gap. We also identify exchange rate as a significant and relevant transmission channel for monetary policy.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().

Page updated 2022-10-29
Handle: RePEc:ibn:ijefaa:v:14:y:2022:i:9:p:38