A Polynomial Regression Model of Monetary Policy Rate in Nigerian Economy

Adeboye, N.O and Agunbiade, D.A and Adeniran, B.G (2014) A Polynomial Regression Model of Monetary Policy Rate in Nigerian Economy. British Journal of Science, 11 (2). pp. 44-51. ISSN 2047-3745

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Abstract

This study examined the impact of monetary policy on economic growth in Nigeria. In the model specified, money supply, currency in circulation and lending are the Jointly Determined variables while monetary policy rate (MPR), the Pre-determined variable .The result indicates that the currency in circulation is the only significant factor with monetary policy rate while the duo of money supply and lending have not been impacted on significantly by Monetary policy. MPR was found to be effectively guided by monetary policy instrument than money supply and lending. This is based on the fact that monetary policy react more to change in currency in circulation than it does to money supply and lending in Nigerian money market .Thus the polynomial regression model statistic of t-value, Pr(|t|),Multiple R-squared, F-statistic and P-value showed that the best fitted model for monitoring effectiveness of monetary policy is currency in circulation. In the light of this, the effectiveness of monitoring monetary policy in Nigeria maybe promoted by keeping a tab on currency in circulation as against other monetary target variables.

Item Type:	Article
Subjects:	Q Science > Q Science (General)
Divisions:	Faculty of Engineering, Science and Mathematics > School of Chemistry
Depositing User:	Mr Taiwo Egbeyemi
Date Deposited:	10 Jul 2020 10:46
Last Modified:	10 Jul 2020 10:46
URI:	http://eprints.federalpolyilaro.edu.ng/id/eprint/977

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