Determinants of Inflation, Exchange Rate, and Output in Nigeria

Louis Kuijs

No 1998/160, IMF Working Papers from International Monetary Fund

Abstract: This paper presents a macroeconomic model of the Nigerian economy. The long-run relationships pertaining to the markets for money, foreign exchange, and (non-oil) output are estimated. Subsequently, dynamic equations are estimated for the price level, the real exchange rate, and output. The results are instrumental in explaining the dramatic developments on the foreign exchange market during 1983-86 and 1992-94, the secular depreciation of the real exchange rate since 1985, and the rise and fall of inflation during 1991-97. The methodology could usefully be applied to other economies whose exports are insensitive to exchange rate movements (e.g., other oil-based economies).

Keywords: WP; price level; money supply; monetary policy; output gap; Nigeria; co-integration; exchange rate; inflation; output; price level result; production function; exchange rate movement; constant returns to scale; oil GDP; GDP deflator; money demand function; excess demand; nominal exchange rate; AFEM exchange rate; overvalued exchange rate; Real exchange rates; Exchange rates; Potential output; Monetary base; Africa; Sub-Saharan Africa (search for similar items in EconPapers)
Pages: 33
Date: 1998-11-01
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=2798 (application/pdf)

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:imf:imfwpa:1998/160

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().