Format: MS WORD Chapters: 1-5
Pages: 68 Attributes: COMPREHENSIVE RESEARCH
1.1 Background of the Study
Monetary policy is the process by which monetary authority of a country controls the supply of the money that is the monetary stock often targeting a rate of interest or the purpose of promoting economic growth and stability. (Masha, S.N. 2000).
Monetary policy measure is monetary management put in place by the government through the control bank. These measures rely on the control of monetary stock that is supply of monetary in order to influence board macroeconomic objective which includes price stability, high level of employment, sustainable economic growth and balance of payment equilibrium. (Peterson, k 2000). These board objectives are achieved through the use of appropriate instrument depending on which objective the policy formulated want to achieved and also on the level of development on the economy.
In the application of monetary policy measures as instrument of economy stabilization, instrument of monetary policy is determined by the nature of the problems to be solved and by environment in which these problems exist there are broadly two categories of these instrument viz: indirect and direct instruments. (Wrights Man, D. 1976)
Indirect instrument is usually used in the market based on economic where the quantity of money stick can be affected through the relationship between supply and revenue money as well as the ability of the monetary authority to influence the creation of reserves.
The reserves and hence money supply can be affected through the following ways:
1. Deposit ratio / change in reserve
2. Change in discount rate
3. Interest rate change
4. Engaging in an open market operation (OMO)
In an underdeveloped financial institution, the instrument of monetary management is largely limited to direct measure which set monetary and credit target at desired levels. The major direct control measures are direct investment regulation however quantity are applied in the achievement of varied objectives.
The objective of monetary policy refers to the ultimate macroeconomic goals which can change from time to time, depending on the economics of a particular country. In Nigeria, the federal government has regulated the volume flow of price and direction of money towards the attainment of a number of objectives such objective includes: acceleration of the rate of domestic production, this restrains the rate of inflation, pursuance of full employment and improvement in the standard of living of the people, to provide optimum level of bank credit to channel such credit into a more productive and small scale enterprises sectors of the economy, expansion and diversification of the export base in order to restore a healthy balance of payment position, a realistic and steady economic growth, exchange rate stability and balance of payment equilibrium. (Oguma, T. 1977)
1.2 Statement of the Problems
The Nigeria economy, has encountered the problem of disequilibrium, inability of mobilize domestic saving and unsatisfactory expansion of domestic output. These problems have consistently and presently done severe damage to Nigeria economy, but most strikingly these problems have continued to play the economy unabated that is, the economy is becoming less strong.
1.3 Research Questions
It is against the background of the problem statement of this study that research question have been identified and they are as follows:
i. Are monetary policy measures effectives?
ii. How has monetary policy influence GDP?
iii. How has monetary policy measures caused satisfactory expansion of domestic output?
It is in this perceptive that the socio-economic impact of monetary policy measures and economic stabilization of Nigeria economy will be analyzed.
1.4 Objective of the Study
The objectives of the study are:
i. To analyzed the effectiveness of various monetary policy objectives and instrument for the period.
ii. To determine the influence of monetary policy on GDP
iii. To ascertain how monetary policy measures have cause expansion on domestic output.
1.5 Research Hypotheses
The following have been formulated to guide the study:
Ho1: monetary policy measures have no impact on the economic stabilization of Nigeria
Ho2: monetary policy measures have no significant influence on GDP
Ho3: there is no significant relationship between monetary policy measures and the expansion of domestic output.
1.6 Significance of the Study
The researches provide insight into monetary policy measures as an instrument of economic stabilization and will therefore be of valuable uses to the following set of people
i. To student, it will provide a compliment to the fair existing text on monetary policy and economic stabilization.
ii. To bankers, it will also find a valuable tool towards analyzing the effects of government action on their activities whether it is valuable or not.
iii. To investors, it will serve as a guideline on effect of monetary policy on various sectors of the economy in which their fund can be invested. To the ordinary reader, this work will serve as an open eye and a valuable store of knowledge.
1.7 Scope of the Study
This research work covers the monetary policies from (1981 – 2010). This study will cover the relationship between the individual who would wish to know about the country’s economic state, and it is hoped that it will go a long way to solve some of the economic problems as regards to monetary policies and its measures as an instrument of economic stabilization.
1.8 Outline of the Study
This research work shall commence by providing a background of the subject matter justifying the need for the study, followed by the literature review and conceptual issues concerning monetary policy measures, and economic stabilization in Nigeria. The rationale for and models of monetary policy measures and economic stabilization shall also be examining among other issues.
The research method shall then be outline before data are presented and discussed.
Concluding comments shall reflect on finding of the study; and recommendations based upon the implication of the findings.
In this research work, references of all books, internet sources, seminar papers, workshops papers, statistical bulletins and others relevant materials used in the course of this research will be at the end of this work as the bibliography.
Adegbite, T. A. & Alabi, W. O., “Monetary policy and economic growth: The Nigerian experience (1970-2010),” Prime Journal of Business Administration and Management
Akujobi, L. E. (2012). Monetary Policy and Nigeria’s Economic Development. African Research Review, Vol 4(4). Pp. 153-161.
Akinjare Victoria, AA Babajide, Isibor Areghan Akhanolu and Okafor Tochukwu (2016). Monetary policy and its effectiveness on economic development in Nigeria. Medwell Journal, 2016.
Amassoma, D., Nwosa, P. I. & Olaiya, S. A., “An appraisal of monetary policy and its effect on macroeconomic stabilization in Nigeria,” Journal of Emerging Trends in Economics and Management Sciences, 2(3), (2011): 232-237. Retrieved from CBN, “What is Monetary Policy?” Understanding Monetary Series No. 1 (2011).
Chimobi, O. P. & Uche, U. C., “Money, price and output: A causality test for Nigeria,” American Journal of Scientific Research, 8, (2010): 78-87.
Chuku, A. C., “Measuring the effects of monetary policy innovations in Nigeria,” Africa Journal of Accounting, Economics, Finance and Banking Research, 5(5), (2009): 112-129.
Danjuma, I., Jbrin, S. M. & Blessing, S. E., “An assessment of the effectiveness of monetary policy in combating inflation pressure on the Nigerian economy,” Erudite Journal of Business Administration and Management, 1(1), (2012): 7-16. Retrieved from www.eruditejournals.org/ejbam.
Diamond, R., “Irving Fisher on the international transmission of boom and depression through money standard,” Journal of Money, Credit and Banking, 35, (2003): 49-58.
Dickey, D. & Fuller W., “Distribution of the Estimators for Autoregressive Time Series with a Unit Root,” Journal of American Statistical Association, 74, (1979): 427-431.
|BANKING AND FINANCE||11|
|CONSTRUCTION AND BIULDING||1|
|ELECTRICAL AND ELECTRONICS||1|
|ENGLISH LITERARY STUDIES||29|
|GEOGRAPHY AND PLANNING||1|
|HOM SCIENCE AND MANAGEMENT||3|
|LIBRARY AND INFORMATION SCIENCE||4|
|OFFICE TECHNOLOGY AND MANAGEMENT||21|
|SCIENCE LABORATORY TECHNOLOGY||19|
|SOIL AND ENVIRONMENTAL SCIENCE||1|
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