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Exchange Rate Pass-Through to Consumer Prices in Nigeria

Ogundipe, Adeyomi A. and Samuel, Egbetokun (2013) Exchange Rate Pass-Through to Consumer Prices in Nigeria. Journal of Business Management and Applied Economics 1, 11.

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Abstract

The increasing overdependence of Nigerian economy on imports has necessitated the need to continually examine the effect of exchange rate shocks in consumer prices. The paper adopts a Structural Vector autoregressive to estimate the pass-through effect of exchange rate changes to consumer prices. Using the Variance Decomposition analyses, the study found a substantially large exchange rate pass-through to inflation in Nigeria. Finding shows that exchange rate has been more important in explaining Nigeria’s rising inflation phenomenon than the actual money supply. Therefore, it is recommended that Nigerian economy focuses on policies that ensure exchange rate stability and sound monetary surveillance.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 31 Oct 2013 15:35
Last Modified: 31 Oct 2013 15:35
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/1785

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