AN EVALUATION OF MONETARY POLICY INSTRUMENTS IN ACHIEVING MONETARY TARGETS IN NIGERIA

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AN EVALUATION OF MONETARY POLICY INSTRUMENTS IN ACHIEVING MONETARY TARGETS IN NIGERIA

ABSTRACT

  • The study evaluates the impact of monetary policy instruments in achieving monetary policy targets in Nigeria. The study used correlation co-efficient to evaluate monetary policy transmission mechanisms on monetary policy targets such interest rate, inflation rate and exchange rate. The findings of the study show that monetary policy tools have not been effective in achieving monetary policy targets. The researcher attributes this to frequent changes in monetary policy and the level of uncertainty of the Nigerian economy as shown in the review of monetary policies in Nigeria. Based on the findings, the study, recommends for ensuring stable macroeconomic environment, promotion of healthy and competitive financial system, the need to bolster the technical competence of CBN among others.TABLE OF CONTENT
  • CHAPTER ONE: INTRODUCTION
    1.1 Background of the Study 1
    1.2 Statement of Problem 2
    1.3 objective of the Study 2
    1.4 Research Questions 3
    1.5 Research Hypotheses 3
    1.6 Scope of the study 3
    1.7 Significance of the study 4
    1.8 Limitation of the study 4
    References 6
  • CHAPTER TWO: LITERATURE REVIEW
    2.1 Monetary policy and Economic schools 7
    2.2 Empirical literature 16
    2.3 Stylized facts of inflation in Nigeria 19
    2.3.1 Components and structure of Consumer Price Index 19
    2.3.2 Institutional Framework and the Mandate of price stability 21
    2.4 Relationship between Inflation and key Macroeconomic Variable 22
    2.5 Trends in inflation and policy response in Nigeria 24
    2.5.1 Definitions of variable 28
    2.6 The Conceptual basis for Monetary Management 30
    2.7 Appropriate Exchange rate 34
    2.8 Interest rates 38
    2.9 Achieving the trinity 44
    References 49
  • CHAPTER THREE: RESEARCH METHODOLOGY
    3.1 Research Design 53
    3.2 Sources of Data 53
    3.3 Method of Data Analysis and Technique for Analysis 53
    References 54
  • CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
    4.1 Introduction 55
    4.2 Data Presentation 55
    4.3 Data Analysis 62
    4.4 Test of Hypothesis 63
  • CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
  • 5.1 Summary of Findings 66
    5.2 Conclusion 66
    5.3 Recommendation 67
    Bibliography 69