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Monetary Policy and its Effectiveness on Economic Development in Nigeria

Akinjare, Victoria Abosede and Babajide, A. A and Areghan, Akhanolu I. and Okafor, Tochukwu Chibuzor (2016) Monetary Policy and its Effectiveness on Economic Development in Nigeria. International Business Managemnet, 10 (22). pp. 5336-5340. ISSN 1993-5250

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Abstract

Monetary Policy play special roles in any developing country and one of the special roles is to control the supply of money with the purpose of promoting economic growth and price stability. Monetary policy in a simplified analysis amount to the determination of the optimal quantity of money or in a "dynamic" sense, the optimal rate of growth money stock in an economy. But there is more to monetary policy than the impact of monetary policy on macroeconomic outcome in Nigeria, so as to draw useful lessons from her inception. In demonstrating the application of ordinary least square method, the multiple linear regression analysis will be used with gross domestic product, inflation rate while exchange rate, interest rate and money supply as the explanatory variables. The data for the study was therefore obtained form the Central Bank of Nigeria publications. The result gotten shows that while exchange rate, interest rate and money supply is significant in impacting the economy, inflation proves otherwise. Hence the study recommends amongst others that Monetary policies should be used to create a favourable movement investment climate by facilitating the emergency of market based interest rate and exchange rate regimes that attract both domestic and foreign investments, create jobs, promote non oil export and revive industries that are currently operation far below installed capacity

Item Type: Article
Uncontrolled Keywords: Monetary Policy, Growth, Development, Optimal Rate, Foreign Investment
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 07 Feb 2017 10:00
Last Modified: 07 Feb 2017 10:00
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/7744

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