The effectiveness of monetary policy in achieving economic growth: the case of Nigeria, 1980-2009
This study investigates the Effectiveness of Monetary policy in achieving Economic Growth: The case of Nigeria for the period 1980-2009. Monetary policy has become a major tool in economic management in Nigeria because of the dominance of the financial sector in its economic activities. This study employed the Ordinary Least square method in carrying out the research. From the various test carried out it was find out that monetary policy rate (MPR) (formerly minimum rediscount rate (MRR)),exchange rate and treasury bill investment have negative impact on GDP. Also it is seen that during the period under review that the manipulation of monetary policy instruments have not proven to be effective in achieving economic growth. It is therefore recommended that the monetary authorities should strengthen the working mechanism of the monetary policy instruments to ensure their success in helping to achieve the desired macroeconomic growth. In addition the policy instrument should be a well coordinated optimal mix of instruments.
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- Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999.
"The financial accelerator in a quantitative business cycle framework,"
Handbook of Macroeconomics,in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393
- Ben Bernanke & Mark Gertler & Simon Gilchrist, 1998. "The Financial Accelerator in a Quantitative Business Cycle Framework," NBER Working Papers 6455, National Bureau of Economic Research, Inc.
- Bernanke, B. & Gertler, M. & Gilchrist, S., 1998. "The Financial Accelerator in a Quantitative Business Cycle Framework," Working Papers 98-03, C.V. Starr Center for Applied Economics, New York University.
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