The Nigerian economy and monetary policy: Some simple empirics

Douglason G. Omotor

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: Monetary policy; Reforms; Central Bank; Fiscal dominance; Monetary policy shocks; Nigeria (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2009-01-09, Revised 2011-06-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/22672/1/MPRA_paper_22672.pdf original version (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:pra:mprapa:22672

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().