Advanced Search
MyIDEAS: Login to save this article or follow this journal

Impact of Inflation on Monetary Policy and Economic Development in Nigerian, 1980-2010. Evidence from Empirical Data

Contents:

Author Info

  • Abiola Adeola Kumapayi

    ()
    (Page No. School of Post Graduate Studies Nigerian Defence Academy, Kaduna)

  • Joseph Ufuoma Nana

    ()
    (Page No. Department of Accountancy Delta State Polytechnic, Oghara)

  • Bright Onoriode Ohwofasa

    ()
    (Page No. Department of Arts and Social Sciences School of General Studies Delta State Polytechnic, Oghara)

Registered author(s):

    Abstract

    The study explores the efficacy in the effective operation of monetary policy in Nigeria with emphasis in inflation. A number of monetary variables which include domestic credit, interest rate, exchange rate and broad money supply were employed for the study. Additionally, fiscal deficit and trade openness were included as a function of inflation in Nigeria. Again, to assess the impact of inflation on the country‟s growth rate, domestic credit and money supply were added to inflation as determinants of economic growth. A simple linear regression was adopted for the study and results reveal that domestic credit, fiscal deficit and a one year lag of inflation are statistically significant in explaining inflation in Nigeria. On the relationship between inflation and the explanatory variables: fiscal deficit, money supply and interest rate have a positive correlation with inflation while exchange rate, trade openness and past level of inflation have a negative impact on inflation. The findings also reveal that impact of inflation on economic growth is negative while that of money supply and domestic credit is positive. The study recommends, among other things, that since impact of inflation on economic growth is negative, policy measures aimed at curtailing such impact should include targeting of less than double digit inflation through effective monetary policy and increase in output and productivity through effective agriculture and full capacity utilization in manufacturing sector.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.aessweb.com/download.php?id=1410
    Download Restriction: no

    File URL: http://www.aessweb.com/archives.php?m=June&id=1410
    Download Restriction: no

    Bibliographic Info

    Article provided by Asian Economic and Social Society in its journal Asian Journal of Empirical Research.

    Volume (Year): 2 (2012)
    Issue (Month): 2 (June)
    Pages: 28-39

    as in new window
    Handle: RePEc:asi:ajoerj:2012:p:28-39

    Contact details of provider:
    Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan
    Web page: http://www.aessweb.com/

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:asi:ajoerj:2012:p:28-39. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qazi Muhammad Imran).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.