Title: Unraveling the Complexity: Crafting a Literature Review on the Impact of Monetary Policy on

Economic Growth in Nigeria

Embarking on the journey of crafting a literature review on the Impact of Monetary Policy on
Economic Growth in Nigeria can be likened to navigating through a labyrinth of intricate theories,
empirical studies, and diverging perspectives. It demands meticulous attention to detail,
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knowledge, and offering valuable insights for future studies. As such, it requires a profound
understanding of economic theories, monetary policy frameworks, and the specific context of
Nigeria's economic landscape.

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interest rates, money supply, exchange rates, and reserve requirements, each of which can have
nuanced effects on economic variables such as inflation, employment, investment, and ultimately,
economic growth.

Furthermore, Nigeria's economic dynamics introduce unique complexities, influenced by factors such
as oil revenue volatility, structural deficiencies, political instability, and global economic fluctuations.
Therefore, synthesizing existing literature to discern the precise impact of monetary policy on
economic growth amidst these multifaceted factors requires rigorous analysis and interpretation.

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both time and expertise. It entails sifting through divergent viewpoints, reconciling conflicting
findings, and discerning the most robust methodologies to derive meaningful conclusions.
Additionally, it necessitates proficiency in data analysis and statistical techniques to assess the
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Also, the core finding of this study showed that monetary policy rate, interest rate, and investment
have insignificant positive effect on economic growth in Nigeria. Articles Get discovered by sharing
your best content as bite-sized articles. Test for the stationary of the variables are presented in table 1
below. Thus, regulatory bodies of the financial sector should set or implement monetary policy
program that would be favourable for the efficient operations of financial institutions. The results of
our analyses showed that the instruments of monetary policy would have had a greater impact on
inflation if inflation were not of structural nature. This finding is in tandem with the supply-leading
hypothesis, and the policy implication is that the Central Bank of Nigeria (CBN) and the Federal
Ministry of Finance should ensure that the financial system is not only healthy but efficient.
Concerning the estimated parameters, the results reported that interest rate, deposit rate and liquidity
ratio positively drive short-run output growth whereas, monetary policy rate, Treasury bill rate, and
cash reserve ratio have a direct impact on short-run output growth in Nigeria. The result obtained
showed that Monetary Policy Rate (MPR) and Liquidity Ratio (LQR) have no significant impact on
Return on Assets (ROA) of the sampled Commercial Banks in Nigeria.It also found out that Cash
Reserve Ratio (CRR) and Loan to Deposit Ratio (LDR) have no significant impact on Return on
Asset (ROA) even as the extent of such impact was negative and positive respectively. Policy
redirection in favor of more responsible use of monetary policy to affect the economy as well as
combat corruption in the country should be employed. The study used the secondary data from CBN
Statistical Bulletin. The result showed that a unit increase in Cash Reserve Ratio (CRR) led to
approximately seven units increase in economic growth in Nigeria. The study recommend for proper
implementation, application and timing of monetary policy to achieve the macroeconomic objectives
of growth. The paper adopts Ordinary Least Square method and evidence from the study suggests
that the Nigerian money market is significantly but negatively related to economic growth due to
several challenges. It was realized that inflationary pressure on the South African economy was lower
than that of Nigeria, even when both countries faced high inflation episodes during the early decade
of 1990s. Hence, the study recommended that monetary authorities should harmonize the two
policies (contractionary and expansionary) to reduce the rate differentials between productive and
unproductive credit supplied to the economy, in order to enable the productive sector of the
economy to increase the flow of output from the private sector. But in all these, the attainment of the
desired objectives of. Social Posts Create on-brand social posts and Articles in minutes. The result
reveals the presence of long-run and short-run asymmetries in the effect of monetary policy shocks
on output growth in Nigeria. By using a recursive structural Vector Autoregressive model, we find
that increases in monetary policy rate (MPR) to cut down on inflation have a depressing impact on
the economy. The study also used the ordinary least square (OLS) since it enabled the researcher to
capture the essence of the work effectively in addition to its high level of simplicity and global
acceptability. To browse Academia.edu and the wider internet faster and more securely, please take a
few seconds to upgrade your browser. In the parsimonious error correction model the test shows that
(R 2) is 57% implying a fairly fitted relationship between the variables and bank loans and advances.
Specifically, the study establishes the effect of Central Bank Rate (CBR) on the financial
performance of Deposit Money Banks, it also establish the effect of Reserve Ratio Requirement on
the financial performance of Deposit Money Banks. Video Say more by seamlessly including video
within your publication. Tone at the top: the effects of gender board diversity on gender wage
inequal. Since both government expenditure and money supply are policy instruments use to stabilize
the economy, government should rely more on government expenditure than money supply. The
study found that except exchange rate, all the other monetary instruments reflect direct impacts on
economic growth in the long run. In the short run however, real GDP (lag1), current level of credit to
private sector as well as credit to private sector (lag 1)and minimum rediscount rate (lag 2) exert
negative impact on real growth rate in Nigeria. Meaning that, the short run dynamics adjust to long
run equilibrium relationship. In effect to this, the effectiveness of influencing real GDP in Nigeria
maybe promoted by emphasizing on real interest rate instead of on monetary target variables due to
the fact that real interest rate is statistically significant.
Adolphus Toby Download Free PDF View PDF THE EFFECT OF MONETARY POLICY ON THE
FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA Ojo A D U R A G
B E M I Sunday This research examined the effect of Monetary Policy on the financial performance
of Deposit Money Banks in Nigeria. The MPR, MSP and CRR have positive relationship with
LADV. Thus this study is carried out to reinvestigate the nexus between monetary policy and
economy growth in Nigeria from 1970 to 2020. See Full PDF Download PDF See Full PDF
Download PDF Related Papers monetary policy and economic growth nexus in nigeria caleb agabus
Download Free PDF View PDF MONETARY POLICY OPERATION IN NIGERIA FROM 1980
TO 2016. Adobe Express Go from Adobe Express creation to Issuu publication. Based on this, we
recommend for concerted improvement of public infrastructure, the perfection of cashless economy
programme, effective prosecution of war against corruption, and the creation of a single treasury
account to help close leakages especially those linked to revenue accruable to government through
MDAs and remittance to States and MDAs, among others. The co-integration test result shows that
the variables are cointegrated with one other and the test for causality indicates that monetary policy
has a noticeable influence on the growth of the economy, while economic growth does not influence
monetary policy equally significantly. The study considered credit to private sector, lending rate and
money supply as independent variables, while real GDP growth rate and unemployment rate were
used as dependent variables.Autoregressive distributed Lag (ARDL) technique was employed
andEviews 9 was used for the analyses. Issuu turns PDFs and other files into interactive flipbooks
and engaging content for every channel. For the ADF statistics, the 99%, 95%, and 90% critical
values are shown after each T-statistics at the left hand. The study found that except exchange rate,
all the other monetary instruments reflect direct impacts on economic growth in the long run. You
can download the paper by clicking the button above. This result gives weight to the place of Central
bank in the national development. To achieve the research objective, a wide range of literatures were
reviewed. To browse Academia.edu and the wider internet faster and more securely, please take a
few seconds to upgrade your browser. Time series data on the subject from 1981-2019 were
collected from Central Bank of Nigeria. Moreover, the study period covers 1996 to 2016 and the
data collected within the period was analysed using ADF Test and Granger Causality Test. To browse
Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade
your browser. Add Links Send readers directly to specific items or pages with shopping and web
links. In the methodology of study, the data utilized include Cash Reserve Ratio (CRR), Turnover
ratio, Liquidity ratio, Monetary Policy Rate (MPR), Money Supply (MS), Bank Assets and Loans
and Advances (TLA). The study therefore recommends amongst others that the Central Bank of
Nigeria (CBN) should place more emphasis on expansionary monetary policy framework with a view
to increasing monetary aggregates to boost output in the agricultural sector. Download Free PDF
View PDF THE EFFICACY OF NIGERIA MONETARY POLICY: A COMPARATIVE
ANALYSIS Ikechukwu Acha This study assesses the efficacy of the Nigeria's monetary policy
against the backdrop of single digit inflation monetary policy target of the regulatory authorities.
Economic activities leading to expansionary trends in GDP growth and the growth rate of credit and
money supply pose no unenthusiastic challenge on inflation. Economic growth was proxy with Gross
Domestic Product per capita (GDP), and Monetary Policy Rate (MPR), Real Interest Rate (RNT),
broad Money supply (M2), Exchange Rate (EXR) as independent variables representing monetary
policy, while Inflation Rate (INF) was introduced as control variable for this study. The t-cal for
LQR is-0.090313 with a prob-value of 0.9289 that is significant at 5% confidence level leading to
the rejection that there is significant relationship between liquidity ratio and bank loans and
advances. The technique comprises of ordinary Least Square regression (OLS) Unit Root Test (URT),
Error Correction Mechanism (ECM) and the Augumented Dicky Fuller Test Approach to establish
the short run and the long run results. In the methodology of study, the data utilized include Cash
Reserve Ratio (CRR), Turnover ratio, Liquidity ratio, Monetary Policy Rate (MPR), Money Supply
(MS), Bank Assets and Loans and Advances (TLA). Archives Harvester, Bielefeld Academic Search
Engine, Elektronische. Specifically, the findings suggested that in the long run only interest rate has
significant effects on economic growth while exchange rate, money supply, and interest rate have a
positive relationship with the dependent variable, it was only the inflation rate that has a negative
relationship with economic growth in Nigeria. The technique of analysis employed was the Vector
autoregressive (VAR) Granger causality test.
The IISTE is currently hosting more than 30 peer-reviewed academic journals and. When the ADF
test shows that the residuals are free of unit roots, it means that residuals are stationary and
cointegrated at degree zero I(0), which means there are cointegration between M2 and RGDP and so
there is an equilibrium relationship between the two variable in the long run. Finally, given the
limitations of monetary policy in Nigeria, it should be used along with government fiscal policy. The
study considered credit to private sector, lending rate and money supply as independent variables,
while real GDP growth rate and unemployment rate were used as dependent variables.Autoregressive
distributed Lag (ARDL) technique was employed andEviews 9 was used for the analyses. Diamond,
R. (2003) Irving Fisher on the international transmission of boom and depression through money.
Real interest rate being the only significant regressor is not one of the target variables of monetary
policy. Terrell Download Free PDF View PDF See Full PDF Download PDF About Press Blog
People Papers Topics Job Board We're Hiring. A multiple regression model was developed and the
Ordinary Least Square (OLS) regression technique employed for data analysis. The study employs
the Cointegration test and the Ordinary Least Square (OLS) technique with the view to estimating
the model coefficients and showcase the policy nexus between the variables. Issuu turns PDFs and
other files into interactive flipbooks and engaging content for every channel. It is geared towards
creating stability in the economy and fostering economic growth which have been the quest of every
nation. It utilized time series secondary data spanning between 1982 and 2013. Result indicates the
existence of long-run relationship between monetary policy indicators and economic growth. The
need to investigate how well the government through the monetary authority has used appropriate
monetary policy to speed-up the economic development process cannot be overemphasized.
Download Free PDF View PDF See Full PDF Download PDF Loading Preview Sorry, preview is
currently unavailable. The monetarist postulates that change in the money supply leads directly to a
change in the real magnitude of. Data was collected from CBN statistical bulletin for the period
1970-2007. Therefore, the study recommends that monetary authorities should give priority attention
to CRR monetary policy tool as it will produce a more desired result in terms of economic
stabilization. Download Free PDF View PDF INFLATION AND GROWTH NEXUS IN NIGERIA:
AN INVESTIGATION INTO THE SIMULTANEOUS RELATIONSHIP Kenneth O Obi
Download Free PDF View PDF The effectiveness of monetary policy in tackling inflation in
emerging economy Oluchukwu Anowor This study decided to investigate the success and failure of
monetary policy in tackling inflation in order to achieve desired economic objectives by making use
of the econometric procedure in estimating the relationship between the variables. But, liquidity ratio
and lending rate exerts negative effect on changes in real gross domestic product as a measure of
growth in Nigeria during the reviewed period. The various methods used in analyzing this study
includes: Unit Root Test, Cointegration Test, Ordinary Least Square estimating technique and Error
Correction Model (ECM). This study empirically reassessed the impact of monetary policy on
economic growth of Nigeria adopting the Error Correction Model approach. On ADF test results, it
shows the two series were non-stationary at their levels, but they were stationary at first difference,
this means the series M2 and RGDP were integrated at order one I(1). The results revealed that
market capitalization, has short run and long run positive impact on economic growth; that credit to
the private sector by banks also has a positive impact on GDP; that the value of share traded in stock
market, the turnover ratio, the investments all have positive influence on economic growth; that
inflation and government expenditure are strong policy variables in the long run. Video Say more by
seamlessly including video within your publication. One of the major objectives of monetary policy
in Nigeria is economic growth but despite the various monetary efforts that have been adopted by the
Central Bank of Nigeria over the years, inflation remains a major threat to Nigeria's economic
growth. But, liquidity ratio and lending rate exerts negative effect on changes in real gross domestic
product as a measure of growth in Nigeria during the reviewed period. In other words, RGDP was
neither Granger causal for PSC nor M 2. Income elasticity of agricultural growth was low at 0.939
percent indicating the income inelastic nature of agricultural commodities. Meanwhile, in the long-
run, monetary policy rate and deposit rate enhance real income growth, while Treasury bill rate and
cash reserve ratio negatively affect output growth of the Nigerian economy.
In the parsimonious error correction model the test shows that (R 2) is 57% implying a fairly fitted
relationship between the variables and bank loans and advances. In addition, the Central Bank of
Nigeria should introduce more monetary instruments that are flexible enough to meet the ever-
growing financial sector in a view to lessen their financial burden and enable investment. Articles
Get discovered by sharing your best content as bite-sized articles. This study thus evaluates the
nexus (link) between the Nigerian economic growth and monetary policy from 1981 to 2012.
Meanwhile, in the long-run, monetary policy rate and deposit rate enhance real income growth, while
Treasury bill rate and cash reserve ratio negatively affect output growth of the Nigerian economy.
The study recommends that, CBN should reassess the use of CRR and OMO as the instruments of
monetary policy if the objective of the policy is to influence lending of the quoted DMBs. For the
short-run, the results indicate that the effect of negative monetary policy shocks dominate the effects
of positive monetary policy rate shocks, while the effect of positive money supply shocks dominates
the effect of negative money supply shocks. The Beta Coefficients techniques and Two Stage Least
Square were employed to analyze the data. From 1999-2017, when the Central Bank of Nigeria
(CBN) employed a wide range of monetary policy variables to stimulate the economy, this study
employs the multiple regression technique to examine the relationship between agricultural output,
government spending, money supply, and inflation rate in Nigeria. The t-cal for LQR is-0.090313
with a prob-value of 0.9289 that is significant at 5% confidence level leading to the rejection that
there is significant relationship between liquidity ratio and bank loans and advances. It was observed
from the regression estimate that a unit increase in inflation contracts agricultural output by 2.086
units. Although this finding corroborates with both theoretical and statistical expectations, it is an
indication that instability in price level has dampening effect on agricultural output. Based on the
nature of incorporated variables in the formulated model, secondary data is employed, sourced from
The Central Bank of Nigeria (CBN) statistical bulletin. This is to ascertain the factors that influence
the banking sector performance using bank’s aggregate assets as proxy for bank performance.
Inflation rate and exchange rate were negatively significant with economic growth. As such,
monetary authorities in Nigeria should adequately managed and monitored the growth level of
money supply in order to realise the desired growth level. Download Free PDF View PDF Annals of
Spiru Haret University. The objective of this study is to analyze the effect of monetary policy
instruments on economic growth in Nigeria using time series data from 1970 to 2012. Also, the core
findings of this study show that real gross domestic product, liquidity ratio, lending rate, treasury bill
rate and money supply are statistically significant. Social Posts Create on-brand social posts and
Articles in minutes. Money supply and investment granger cause economic growth, while economic
growth causes interest rate in Nigeria. Additionally, the government should give adequate attention to
agriculture and should make sure that its financial allotment for agriculture is properly executed and
that the funds are used efficiently in order to boost agricultural output. After forming the stationary
of the variables, we proceed to test for the co integration among the variables. When. High
unemployment, low investment, high inflation, and an unstable foreign exchange rate are examples
of such issues. The above table is the result of the static regression analysis. The study adopted Auto
Regressive Diagnostic Lag and unit root test, cointegration test, granger causality test and VECM
was conducted in this study. Given the important role of interest rates in Download Free PDF View
PDF Kampala International University Interdisciplinary Journal of Humanities and Social Sciences
Monetary Policy Management and Economic Growth in Nigeria: New Lessons Relearned Taiwo
Adedayo This research study examines the existing links between monetary policy management and
economic growth in Nigeria within the period 1960-2018. You can download the paper by clicking
the button above. To browse Academia.edu and the wider internet faster and more securely, please
take a few seconds to upgrade your browser. Furthermore, the long run dynamic result also shows
that there exists a long-run relationship or equilibrium among the variables. The variables include
interest rate (INT), exchange rate, inflation rate, government expenditure on agriculture, gross capital
formation, and household expenditure.
Furthermore, the study finds evidence in support of the expansionary monetary policy in the long-
run. However, a significant negative effect of Monetary Policy Rate on Lending Behaviour was
found while Exchange Rate was found to have a significant positive effect on lending behaviour of
quoted DMBs. Download Free PDF View PDF Macroeconomic policy for full and productive and
decent employment for all: The case of Nigeria Ugochukwu Agu This study examines the prospects
and challenges of productive employment and decent work in Nigeria within essential
macroeconomic policy targets. It was revealed from the findings of the study that interest rate and
liquidity ratio has negative relationship with GDP while exchange rate, cash reserve ratio and
monetary policy rate has positive relationship with GDP. Help Center Here you'll find an answer to
your question. Conversely, the Keynesians posit that change in money stock facilitates activities in
the financial market. Adobe InDesign Design pixel-perfect content like flyers, magazines and more
with Adobe InDesign. Three research questions and three hypotheses were raised. Government
expenditure as a fiscal policy instrument is greater, more reliable (predictable) and faster than the use
of money supply as a monetary policy instrument in stabilizing the economy. Concerning the
estimated parameters, the results reported that interest rate, deposit rate and liquidity ratio positively
drive short-run output growth whereas, monetary policy rate, Treasury bill rate, and cash reserve ratio
have a direct impact on short-run output growth in Nigeria. To browse Academia.edu and the wider
internet faster and more securely, please take a few seconds to upgrade your browser. The data were
obtained from Central Bank of Nigeria Statistical Bulletin, World Bank (World Development
Indicators) and International Monetary Fund (World Economic Outlook). Ordinary Least Square
with Software Package for Social Science (SPSS) was used as data analyses method. The proxied
variables, real gross domestic product (RGDP), private sector credit (PSC) and broad money supply
(M 2) were subjected to preliminary tests while a validity test of serial autocorrelation was also
conducted on the residuals of the variables. Download Free PDF View PDF A REASSESSMENT
OF THE IMPACT OF MONETARY POLICY ON ECONOMIC GROWTH: STUDY OF
NIGERIA Oluchukwu Anowor Nigeria has over the years been controlling her economy through
various macroeconomic policies of which monetary policy is among using some monetary policy
instruments in efforts to drive along the desired path. You can download the paper by clicking the
button above. The causality test showed that money and economic growth are independent of each
other, meaning that there is no predictive power of money supply in explaining the economic growth
and vice versa. Effects of inflation targeting policy on inflation rates and gross domestic p. The
result of this paper shows that monetary policy represented by money supply (M2) has a positive
impact on economic growth proxy with RGDP. The study using OLS technique discovered that the
combination of both monetary and fiscal instruments impacted on consumer price index in Nigeria
within the period of review and concludes that regardless of the mixed individual impacts of the
variables; government policies were able to manage consumer price index to a considerable extent.
The R 2 at 98.27% indicates that the variables are strongly fitted which was also confirmed by the
adjusted R-2 found to be 98.0%. The t-test shows that t-cal for MPR is 0.176764 while its prob-
value of 0.8608 is significant at 5% confidence level leading to the rejection that there is significant
relationship between monetary policy rate and bank loans and advances. The result was in
consonance with economic literature as monetary policy among other objectives is geared towards
achieving the macroeconomic objectives of sustained economic growth and price stability. The MPR,
MSP and CRR have positive relationship with LADV. Digital Sales Sell your publications
commission-free as single issues or ongoing subscriptions. Based on this, the study recommended
that the federal government, through the monetary authority, develop a system that would ensure that
farmers would receive an interest rate in the single digits. In the short run however, real GDP (lag1),
current level of credit to private sector as well as credit to private sector (lag 1)and minimum
rediscount rate (lag 2) exert negative impact on real growth rate in Nigeria. These are the Questions
this study would attempt to answer. However, the coefficient of INF was found to exert a negative
effect on crop production. This dissertation recommends that if monetary policies are to be effective,
an institutional framework which guarantees their autonomy from undue influence from fiscal
authorities is crucial. The study concludes that quoted DMBs' ability to grant more credit is not
significantly influenced by CRR, OMO and Deposit mobilization.
The result of this study does not support the assertion that a tight monetary policy coupled with a
contractionary fiscal policy will engender natural rate of growth of the Nigerian economy. However,
the role of money in an economy got further elucidation from (Keynes. The main conclusion drawn
from this study is that domestic monetary policies has largely been unsuccessful in taming inflation
and growing the economy significantly in the Nigeria as it is in most developing Nations; this is due
to unhealthy Government meddling with monetary structures. From 1999-2017, when the Central
Bank of Nigeria (CBN) employed a wide range of monetary policy variables to stimulate the
economy, this study employs the multiple regression technique to examine the relationship between
agricultural output, government spending, money supply, and inflation rate in Nigeria. Data for the
study were collected from the CBN Statistical bulletin, 2019 edition. Money supply and investment
granger cause economic growth, while economic growth causes interest rate in Nigeria. Data was
collected from CBN statistical bulletin for the period 1970-2007. Simple percentage and Chi-square
statistical method were used to analyse the data collected before reaching conclusion. Money supply
however has significant positive effect on growth in Nigeria. It was revealed from the findings of the
study that interest rate and liquidity ratio has negative relationship with GDP while exchange rate,
cash reserve ratio and monetary policy rate has positive relationship with GDP. The results also
indicate that a one standard deviation shock to the monetary policy rate results in a peak in the
unemployment rate, months after the shock. This study thus evaluates the nexus (link) between the
Nigerian economic growth and monetary policy from 1981 to 2012. Thus, increment in money
supply is incapable of generating growth in the Nigerian economy. The Adjusted R-2 is
approximately 48% also shows that 48 percent of changes in bank loans and advances, was jointly
explained by MSP and CRR. Articles Get discovered by sharing your best content as bite-sized
articles. GIFs Highlight your latest work via email or social media with custom GIFs. Download Free
PDF View PDF THE LINKAGE BETWEEN MONEY SUPPLY AND ECONOMIC GROWTH IN
NIGERIA: AN ECONOMETRIC INVESTIGATION Marshal Iwedi PhD The study aims at
examining the linkage between money supply and economic growth in Nigeria. In the methodology
of study, the data utilized include Cash Reserve Ratio (CRR), Turnover ratio, Liquidity ratio,
Monetary Policy Rate (MPR), Money Supply (MS), Bank Assets and Loans and Advances (TLA).
Teams Enable groups of users to work together to streamline your digital publishing. To achieve the
research objective, a wide range of literatures were reviewed. The findings suggest that all
explanatory variables account for approximately 93.38% variation in consumer spending, indicating
interest and inflation rates and other control variables such as per capita income, indirect tax and
savings as important determinants of PCE in Nigeria. Victor Download Free PDF View PDF Annals
of Spiru Haret University. The technique comprises of ordinary Least Square regression (OLS) Unit
Root Test (URT), Error Correction Mechanism (ECM) and the Augumented Dicky Fuller Test
Approach to establish the short run and the long run results. It measures economic growth using
gross domestic product and the indices of monetary policy that include: cash reserve ratio, monetary
policy rate, exchange rate, money supply, and interest rate. The study also used the ordinary least
square (OLS) since it enabled the researcher to capture the essence of the work effectively in
addition to its high level of simplicity and global acceptability. Publishing service based in the U.S.
and Europe. The aim of the institute is. What's hot ( 20 ) Vol7no2 6 Vol7no2 6 132 article text-185-
1-10-20210523 132 article text-185-1-10-20210523 Choudhri et-al-2015-working-paper-1 Choudhri
et-al-2015-working-paper-1 The effects of monetary policy on inflation in ghana. Industrialization
has always constituted a major focus of development strategy and government policy. The estimated
results show that money supply and interest rate shocks account for about 43.19% and 41.38% of
total variation in inclusive growth in Nigeria. Statistics Make data-driven decisions to drive reader
engagement, subscriptions, and campaigns.
Monetary policy variables-interest rate, money supply, exchange rate and liquidity ratio all had a
negative and non significant relationship with inflation. Resources Dive into our extensive resources
on the topic that interests you. Money supply (proxied by M2) has a short and long run positive and
significant link on Real Gross Domestic Product in Nigeria. The findings showed that a long-run
relationship exists between monetary policy and economic growth within the periods understudied.
Download Free PDF View PDF EFFECT OF MONETARY POLICY ON ECONOMIC GROWTH
IN NIGERIA: 1990 -2011 IBIMINA M A C D U F F BROWN-WEST This study examined the
effect of Monetary Policy on the economic growth of Nigeria from 1990-2011, using Interest rate,
Cash reserve ratio, Liquidity ratio, Exchange rate and Monetary policy rate as proxy for Monetary
policy and RGDP as proxy for Economic growth. Help Center Here you'll find an answer to your
question. Relying on both the Keynesian and Structuralist analyses, data were harvested on
inflationary performance for 24 years on Nigeria economy from the World Bank data base and
assessed it against achievement of the targeted single digit inflation. It was found that all variables
were stationary and there is long term relationship between economic growth and monetary policy
with high speed of adjustment between the long and short run fluctuation. Also, the core finding of
this study showed that monetary policy rate, interest rate, and investment have insignificant positive
effect on economic growth in Nigeria. EBSCO, Index Copernicus, Ulrich's Periodicals Directory,
JournalTOCS, PKP Open. As such the study recommends that Economic growth (RGDP) can be
achieved if monetary policy is emphasized both on short and long run by Nigeria monetary
authorities. Policy redirection in favor of more responsible use of monetary policy to affect the
economy as well as combat corruption in the country should be employed. The result obtained
indicates that infrastructural development, institutional framework, bank credit,foreign direct
investment, electricity, stable exchange rate, low inflation and economic diversification are key
drivers of industrialization. The empirical evidence emanating from the study reveals that money
supply had a direct relationship with. Therefore, the study recommends that monetary authorities
should give priority attention to CRR monetary policy tool as it will produce a more desired result in
terms of economic stabilization. The t-cal for MSP is 30.01694 with a prob-value of 0.000 that is
insignificant at 5% confidence level leading to the acceptance that there hence acceptance that there
is significant relationship between money supply and bank loans and advances. The co-integration
test result shows that the variables are cointegrated with one other and the test for causality indicates
that monetary policy has a noticeable influence on the growth of the economy, while economic
growth does not influence monetary policy equally significantly. The Adjusted R-2 is approximately
48% also shows that 48 percent of changes in bank loans and advances, was jointly explained by
MSP and CRR. In effect to this, the effectiveness of influencing real GDP in Nigeria maybe
promoted by emphasizing on real interest rate instead of on monetary target variables due to the fact
that real interest rate is statistically significant. The objective of this study therefore, is to assess the
impact of monetary policy in Nigeria, specifically, if it has. Since both government expenditure and
money supply are policy instruments use to stabilize the economy, government should rely more on
government expenditure than money supply. On ADF test results, it shows the two series were non-
stationary at their levels, but they were stationary at first difference, this means the series M2 and
RGDP were integrated at order one I(1). Archives Harvester, Bielefeld Academic Search Engine,
Elektronische. Result from this study shown that, liquidity ratio, monetary policy rate, loan to
deposit ratio and cash reserve ratio have no significant influence on commercial banks credit to
agricultural sector in Nigeria. Given the important role of interest rates in Download Free PDF View
PDF Kampala International University Interdisciplinary Journal of Humanities and Social Sciences
Monetary Policy Management and Economic Growth in Nigeria: New Lessons Relearned Taiwo
Adedayo This research study examines the existing links between monetary policy management and
economic growth in Nigeria within the period 1960-2018. It utilises Structural Vector Autoregressive
model to analyse the objectives of the study. Fullscreen Sharing Deliver a distraction-free reading
experience with a simple link. The study recommends that, CBN should reassess the use of CRR and
OMO as the instruments of monetary policy if the objective of the policy is to influence lending of
the quoted DMBs. Stock Market Brief Deck 213.pdf Stock Market Brief Deck 213.pdf Monetary
policy and economic growth of nigeria 1. Based on this, the study recommended that the federal
government, through the monetary authority, develop a system that would ensure that farmers would
receive an interest rate in the single digits.