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A Flow-of-Funds Framework for Evaluating the Behaviours of Fiscal and Monetary Authorities Using Nigerian Data

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  • Odedokun, Matthew O

Abstract

This article argues for and suggests a systems approach in estimating the reaction functions of fiscal and monetary authorities in a situation where both are highly interdependent. The suggested model is estimated with annual data for Nigerian fiscal and monetary authorities over the period 1968 to 1982. The findings include "domination" of aggregate fiscal over aggregate monetary policies; nonresponsiveness of aggregate monetary and fiscal policies to major economic goals except modern sector employment; and the relative importance of ideological and financial factors in the reaction functions of the authorities.

Suggested Citation

  • Odedokun, Matthew O, 1987. "A Flow-of-Funds Framework for Evaluating the Behaviours of Fiscal and Monetary Authorities Using Nigerian Data," Public Finance = Finances publiques, , vol. 42(2), pages 193-213.
    • Handle: RePEc:pfi:pubfin:v:42:y:1987:i:2:p:193-213
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