Thesis Abstract

Abstract
Monetary policy plays a crucial role in shaping the economic landscape of a country. This research aims to investigate the effectiveness of monetary policies in the Nigerian economy. The study utilizes both qualitative and quantitative analysis to assess the impact of monetary policies on key economic indicators such as inflation, exchange rates, and economic growth. The research focuses on the period from 2010 to 2020, encompassing various monetary policy measures implemented by the Central Bank of Nigeria (CBN) during this time frame. By analyzing data on key economic variables and monetary policy instruments, the study aims to evaluate the effectiveness of these policies in achieving their stated objectives. One of the key findings of the research is the significant impact of monetary policies on inflation rates in Nigeria. The analysis reveals a clear relationship between changes in interest rates and inflation levels, indicating that the CBN's monetary policy tools have been effective in controlling inflation to a certain extent. Furthermore, the study examines the impact of monetary policies on exchange rates in the Nigerian economy. By analyzing the relationship between exchange rate movements and monetary policy decisions, the research aims to shed light on the effectiveness of these policies in stabilizing the naira and promoting external trade. In addition, the research explores the link between monetary policies and economic growth in Nigeria. By analyzing data on GDP growth rates and monetary policy measures, the study seeks to assess the extent to which monetary policies have contributed to promoting economic growth and development in the country. Overall, the findings of this research provide valuable insights into the effectiveness of monetary policies in the Nigerian economy. The analysis suggests that while monetary policies have had a positive impact on key economic indicators such as inflation and exchange rates, there is room for improvement in terms of promoting sustainable economic growth. The research concludes by highlighting the importance of continued monitoring and evaluation of monetary policies to ensure their effectiveness in achieving macroeconomic stability and promoting long-term economic growth in Nigeria.

Thesis Overview

1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY

Some years ago, Nigerian economy was faced with the problems of circulation of money. He major problems that affected the economy were price instability unemployment balance of payment which hindered the economic growth.

As time went on, he government decided to establish a policy which was know as “monetary policy” which will be used to control the economy by monetary authorities to check the volume of money quantity availability cost and direction money and credit in the economy as a hole.

The purpose of the study is listed beneath:

– To find the effect of monetary policy on employment in the Nigerian economy

REASONS FOR THE STUDY

The reasons for the study is to know the effectiveness of monetary policy banking sector of Nigeria and some of the reasons are listed beneath-

1. To know the reason why monetary policy is vital instrument in the banking sector.

2. To know the effectiveness of monetary policy on banking sector in Nigeria.

3. To consolidate banking activities in the economy.

4. To stabilize the availability of monetary in circulation in the Nigerian economy.

SIGNIFICANCE OF THE STUDY

In this course of study throughout the process I have acquired in my study which I have gone through and I have realized that the government and the banks will benefit more form this research work and even those in the department of banking and finance and other financial studies which readers will benefit form it and further looking into it I observed that it will help the global world by acquiring more knowledge through reading my research.

1.2 DEFINITION OF THE TERMS

The terms used in my research will be firstly defined as follows:

EFFECTIVENESS:

According to the oxford dictionary it is the act of producing the result that is wanted intended.

MONETARY POLICY:

According to John Orjih referred to monetary policy “as a deliberate government policy which manipulates the cost of and availability of money and credit as a means of achieving the desired level of prices employment output and other economic objectives.

BANKING: It is the business activities of the bank (s) according to Kalu (2003)”as an association of person (s) authorized by law or incorporated that carry on financial services to the general public.

NIGERIA: This is an association of people with different status that is controlled by the federal government.