An empirical analysis of the impact of monetary policy on economic development in nigeria (1985–2011)

• <p> Title page<br>Approval page<br>Dedication<br>Acknowledgement<br>Abstract<br>

Chapter ONE

INTRODUCTION

• <br>
• 1.1Background of the study<br>
• 1.2Statement of the problem<br>
• 1.3Objectives of the study<br>
• 1.4Research questions<br>
• 1.5Research hypothesis<br>
• 1.6Significance of the study<br>
• 1.7Scope and limitation of the study<br>

Chapter TWO

LITERATURE REVIEW

• <br>
• 2.1Literature review<br>
• 2.2Theoretical literature<br>
• 2.3Empirical literature<br>
• 2.4Limitation of the previous studies<br>

Chapter THREE

RESEARCH METHODOLOGY

• <br>
• 3.1Introduction<br>
• 3.2Method of data analysis<br>
• 3.3Model specification<br>
• 3.4sources of data collection<br>
• 3.5justification of data collection<br>
• 3.6Evaluation technique<br>

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

• PRESENTATION AND ANALYSIS OF RESULTS<br>
• 4.1Presentation and interpretation of results<br>
• 4.2economic a priori criteria<br>
• 4.3Statistical criteria (First-order test)<br>
• 4.4Econometrics criteria<br>

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

• RECOMMENDATIONS, AND<br>CONCLUSION<br>
• 5.1Summary<br>
• 5.2Recommendations<br>
• 5.3Conclusion<br>Bibliography<br>Appendices <br></p><p> </p><p>INTRODUCTION<br>
• 1.1BACKGROUND OF THE STUDY<br>One of the major issues which have occupied the mind of government<br>for years is the impact of monetary policy as a tool for price stability in<br>Nigeria. Despite the lack consensus amongst the economy, there is<br>remarkable strong agreement that monetary policy as an economy-<br>stabilizing measure in Nigeria refers to the persistence rise in the<br>general price level.<br>Monetary policy is one of the macroeconomic policies available for<br>managing the economy. It is however important today because its<br>effects on economic aggregates such as price, output, interest rates and<br>exchange rates. In most countries, the central bank is saddled with the<br>responsibility of conducting monetary policy. In the case of Nigeria, the<br>responsibility entirely lies with the Central Bank of Nigeria (CBN). The<br>discretionary control of the money stock by the monetary authority<br>involves the expansion and contraction of money, influencing interest<br>rate to make money cheaper or more expensive depending on the<br>prevailing economic situation.<br>
• 1.2STATEMENT OF THE PROBLEM<br>The monetary policy implemented in the economy over the past years<br>has been detrimental and inconsistent with developmental needs of the<br>economy (Apata J.T, 2007). This concern has exerted pressures on the<br>monetary authorities in Nigeria to re-examine and re-evaluate their<br>monetary policies with the view of finding possible solutions. As a result<br>of this, the Structural Adjustment Programme (SAP) as introduced in<br>Nigeria in 1986 in order to correct the structural imbalances in the<br>economy and to liberalize the financial system.<br>Despite various actions used by the monetary authorities in<br>administering monetary policy in Nigeria, there are still limits to the<br>effectiveness of monetary policy. There has been a wide discrepancy<br>between target and outcome due to the fact that the central bank has<br>not been able to achieve the various objectives it set out for itself. For<br>instance, there has been a problem hitting inflation target. The<br>inflation target in 2008 was 7% but the performance was about 19%.<br>Nigeria needs an effective, efficient, sound and consistent monetary<br>policy that has a positive effect on interest rate, employment and real<br>output, so as to minimize the economic problems disturbing Nigeria as a<br>developing country<br>
• 1.3RESEARCH QUESTIONS<br>What is the effect of monetary policy on price stability in Nigeria?<br>To what extent do the instruments of monetary policy control<br>inflation in Nigeria?<br>What are the contributions of monetary policy towards developing<br>Nigeria?<br>
• 1.4OBJECTIVES OF THE STUDY<br>This study seeks to achieve the following objectives;<br>I. To determine the impact of monetary policy on inflation in<br>Nigeria.<br>II. To empirically examine the effectiveness of monetary policy on<br>economic stability in Nigeria.<br>III. To analyze the contributions of monetary policy towards<br>promoting growth and development of the Nigerian economy.</p><p>
• 1.5RESEARCH HYPOTHESIS<br>The hypothesis to be tested in the course of this research work is stated<br>below;<br>H1 = Monetary policy has significant impact on inflation in Nigeria.<br>H2 = Monetary policy has no significant impact on inflation in Nigeria.<br>
• 1.6SIGNIFICANCE O THE STUDY<br>This study is significant in the following ways;<br>I. It would provide an objective view of the effectiveness of the<br>monetary policy in Nigeria.<br>II. It would provide an economic basis upon which to examine the<br>effect of monetary policy on the Nigerian economy.<br>III. It would provide policy recommendations to the policy makers<br>on ways to make the Nigeria economy vibrant through the<br>monetary policy.<br>
• 1.7SCOPE OF THE STUDY / LIMITATION OF THE STUDY<br>This study will focus on major growth and development components<br>which are vital parts of monetary policy. The study will also empirically<br>examine the effectiveness of monetary policy in the Nigerian economy.<br>Factors that affect smooth execution of the project include inadequate<br>finance and short time.<br>policy are yet to be fully harnessed. The purposed of this study<br>is to analyse the impact of monetary policy with Nigeria being<br>the case study. With regards to the data analysis, regression<br>analysis was applied. The study covers the effectiveness of<br>monetary policy from the period 1985 to
• 2011.The study<br>revealed that the level of effectiveness of monetary policy is<br>highly influenced by the Central Bank of Nigeria (CBN).<br>TABLE OF CONTENTS<br>Title page<br>Approval page<br>Dedication<br>Acknowledgement<br>Abstract<br>

Chapter ONE

INTRODUCTION

• <br>
• 1.1Background of the study<br>
• 1.2Statement of the problem<br>
• 1.3Objectives of the study<br>
• 1.4Research questions<br>
• 1.5Research hypothesis<br>
• 1.6Significance of the study<br>
• 1.7Scope and limitation of the study<br>

Chapter TWO

LITERATURE REVIEW

• <br>
• 2.1Literature review<br>
• 2.2Theoretical literature<br>
• 2.3Empirical literature<br>
• 2.4Limitation of the previous studies<br>

Chapter THREE

RESEARCH METHODOLOGY

• <br>
• 3.1Introduction<br>
• 3.2Method of data analysis<br>
• 3.3Model specification<br>
• 3.4sources of data collection<br>
• 3.5justification of data collection<br>
• 3.6Evaluation technique<br>

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

• PRESENTATION AND ANALYSIS OF RESULTS<br>
• 4.1Presentation and interpretation of results<br>
• 4.2economic a priori criteria<br>
• 4.3Statistical criteria (First-order test)<br>
• 4.4Econometrics criteria<br>

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

• RECOMMENDATIONS, AND<br>CONCLUSION<br>
• 5.1Summary<br>
• 5.2Recommendations<br>
• 5.3Conclusion<br>Bibliography<br>Appendices</p> <br><p></p>