Financial Development and the Effectiveness of Monetary Policy Channels in Nigeria: A DSGE Approach

Olumuyiwa Apanisile and Tolulope Osinubi

Journal of African Business, 2020, vol. 21, issue 2, 193-214

Abstract: The study examines the effect of financial development on the effectiveness of monetary policy transmission channels in Nigeria by estimating a sticky-price DSGE model using Bayesian estimation approach. Four major transmission channels are considered due to the economic and financial conditions of Nigeria. The study employs quarterly data from 2004:1 to 2016:4 and data are sourced from World Development Indicator (online version). Results show that financial development in the period under study has positive effect on monetary policy transmission channel. While credit channel is the most active channel in stimulating output, expectation channel is the most active in stabilizing prices.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1080/15228916.2019.1625021 (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:taf:wjabxx:v:21:y:2020:i:2:p:193-214

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/wjab20

DOI: 10.1080/15228916.2019.1625021

Access Statistics for this article

Journal of African Business is currently edited by Samuel Bonsu

More articles in Journal of African Business from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().