MONETARY POLICY INSTRUMENTS AND ECONOMIC GROWTH (1981 – 2019): THE NIGERIAN EXPERIENCE

Kamal, Adekunle Adewunmi (2020) MONETARY POLICY INSTRUMENTS AND ECONOMIC GROWTH (1981 – 2019): THE NIGERIAN EXPERIENCE. JOURNAL OF MANAGEMENT AND TECHNOLOGY (JORMATECH), 6 (1). pp. 153-162. ISSN 117-1847

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Abstract

The nexus between monetary policy and economic growth stabilization have been a major concern in economics research context. This paper attempted to bridge the knowledge gap through investigating monetary policy instruments and economic growth(1981-2019): in Nigeria. The study employed Ordinary Least Square analysis approach and also conducted Augmented Dickey-Fuller unit root, Johansen Cointegration and Granger causality test to estimate the long-run relationship between the GDP and explanatory variables. Annual time series data on monetary policy variables and Gross Domestic Product (GDP)were sourced from Central Bank of Nigeria(CBN) statistical bulletin 2019 edition. Findings of this study revealed that bank credit to private sector, external debt and exchange rate were monetary policy instruments capable of stimulating economic growth and development in Nigeria. However, Treasury bill and interest rate have inverse and insignificant influence on Nigeria’s economic growth. The study therefore recommends that: Central Bank of Nigeria needs to reconsider and apply monetary policy to boost economic growth by employing the most effective instrument such as bank credits to private sector and exchange rate in order to uphold macroeconomics objectives and sustainable economic development on a long run. Also, efforts should be put in place to ensure that commercial banks follow Central Bank’s guidelines for financial intermediation.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Unnamed user with email [email protected]
Date Deposited:	18 Aug 2021 11:41
Last Modified:	18 Aug 2021 11:41
URI:	http://eprints.federalpolyilaro.edu.ng/id/eprint/1746

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