ABSTRACT
The subject matter of inquiry is
"Monetary Policy as a tool of Achieving Price Stability in the Nigerian
Economy". The study therefore examined the influence of money supply
Monetary Policy Variable on Consumer Price Index (CPI), the effect of
interest rate Monetary Policy Target Variable on domestic private
investment and impact of money supply on Gross Domestic Product Proxy
for economic growth for the periods 1991 to 2007.
The research design adopted in the study
is the Correlation Research Design. Economic application was used for
the analysis of relevant relationships and the Ordinary Least Square
[OLS] Regression Technique was employed for estimation purposes.
The estimates of relevant functions were appraised on A-Priori theoretical expectation, Statistical and Econometric grounds.
The study suggests that Monetary Policy has significant influence on the direction of aggregate prices in the economy.
Again Monetary Policy has significant nominal impact on economic growth in Nigeria.
However, the study shows Monetary Policy
has not influenced investment through interest rate. Incidentally, the
bane of Monetary Policy performance through its interest rate channel is
due to the huge presence of the government in the money market for fund
borrowing.
The study therefore recommends that
federal government through the Central Bank of Nigeria evolve
appropriate policy to discourage the government (state and otherwise)
participation in the money markets as borrower among others.
TABLE OF CONTENT
Title Page
Certification
Dedication
Acknowledgement
Abstract
Table of Contents
|
CHAPTER ONE
|
|
|
INTRODUCTION
|
|
|
1.1 Background to the study
|
|
|
1.2 Statement of problems
|
|
|
1.3 Research Question
|
|
|
1.4 Objectives of Study
|
|
|
1.5 Significant of the study
|
|
|
1.6 Scope of the study
|
|
|
1.7 Limitations of the study
|
|
|
1.8 Definition of terms
|
|
|
References
|
|
CHAPTER TWO
Literature Review
2.1 Conceptual Reviews
2.1.1 Monetary Policy
2.1.2 Price Stability
2.2 History of Monetary Policy in Nigeria
2.2.1 Monetary Policy before 1986
2.2.2 Monetary Policy since 1986
2.3 Objectives of Monetary Policy
2.3.1 Economic Growth
2.3.2 Full Employment
2.3.3 Balance of Payment Equilibrium
2.4 Tools of Monetary Policy
2.4.1 Direct Control
2.4.1.1 Quantitative Ceilings and Bank Credit
2.4.1.2 Administered Interest and Exchange Rates
2.4.1.3 Selective Credit Control
2.4.1.2 Indirect Control/ General Quantitative Control
2.4.2.1 Open Market Operations
2.4.2.2 Discount Rate
2.4.2.3 Moral Suasion
2.4.2.4 Reserve Requirement
2.4.2.5 Special Directives
2.4.2.6 Stabilization Securities
2.4.2.7 Special Deposits
2.5 Recent Developments in Monetary Policy
2.5.1 Target of Monetary Policy
2.5.1.1 Money Supply
2.5.1.2 Bank Credits 2
2.5.1.3 Interest rate
2.5.2 Indicators of Monetary Policy
2.5.3 Lingering problem of Monetary Policy
2.5.4 Challenges of Monetary Policy
2.5.5 Expansion and Contraction of Monetary Policy
2.5.6 Contractionary Monetary Policy or Restrictionary Monetary Policy
2.6 Theoretical Review
2.6.1 The Monetarist View
2.6.2 The Keynesian Views
2.7.1 Empirical Views
2.7.2 Researcher
References
CHAPTER THREE
Research Methodology
3.0 Introduction
3.2 Research Design
3.4 Specification of Model
3.5 Estimate Technique
3.6 Evaluation Procedure
3.6.1 A-Priori Theoretical Expectation Critical
3.6.2 Statistical Criteria
CHAPTER FOUR
Presentation and Interpretation of Results
4.0 Introduction
4.1 Presentation of Data
4.2 Presentation of Model
4.3 Presentation of Results
4.4 Interpretation of Results
CHAPTER FIVE
Summary Recommendation and Conclusion
5.0 Introduction
5.1 Summary
5.2 Conclusion
5.3 Recommendation