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Alleviating Poverty in Nigeria: Keynesian Vs Monetary Theory of Poverty

Author

Listed:
  • Maku Olukayode Emmanuel

    (Department of Economics, Faculty of Social Sciences, Olabisi Onabanjo University, Nigeria)

  • Tella Afeez Taiwo

    (Department of Economics, Faculty of Social Sciences, University of Ibadan, Nigeria)

  • Fagbohun Akinola Christopher

    (Department of Economics, Faculty of Social Sciences, Lead City University, Nigeria)

Abstract

This study comparatively investigates the impacts of fiscal and monetary policies on poverty in Nigeria from 1986 to 2018. Using the Ordinary Least Square and Standardized or Beta Coefficient approach, we found that the Nigerian political system plays a vital role on a large number of its citizens living in extreme poverty. Other factors identified as the likely causes of poverty are insurgencies, terrorism, and low productivity among others. Also, monetary policy is more important in alleviating poverty than the fiscal policy which favored the monetary school arguments. Specifically, monetary measures like exchange rate and interest rate are more significant in alleviating poverty far more than inflation rate while fiscal measures proxy with government recurrent expenditure plays a more vital role in alleviating poverty in Nigeria than others like government capital expenditure and government recurrent expenditure. The study recommended that in the case of monetary measures, there is a need for Government through the Central Bank of Nigeria, to shift their attention towards key monetary policy measures like interest rate and exchange rate compare to other monetary measures.

Suggested Citation

  • Maku Olukayode Emmanuel & Tella Afeez Taiwo & Fagbohun Akinola Christopher, 2020. "Alleviating Poverty in Nigeria: Keynesian Vs Monetary Theory of Poverty," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(1), pages 103-120, March.
    • Handle: RePEc:vrs:suvges:v:30:y:2020:i:1:p:103-120:n:7
    DOI: 10.2478/sues-2020-0007
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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