Analytical Consequence of Monetary Policy Instrumenet on the Nigerian Economic Growth

Oluwatoyin Abayomi
2014 Zenodo  
Though in recent times, the Central Bank of Nigeria has tried to make use of monetary policy; but despite the increasing emphasis on the manipulation of monetary policy in Nigeria, the macroeconomic problems still persist. Thus, in order to determine whether monetary policy monetary policy has any impact on the Nigerian economy, four monetary policy instruments were tested against Gross Domestic Product. The analytical technique used is simple regression analysis while the student t-test was
more » ... udent t-test was used for the test. Results from the findings indicated that although monetary policy appears to be significant for the period under review since their Prob>F is 0.0049 with F-Stat 10.15., it has not been so effective because its contribution to GDP is minimal. Hence, the government should diversify the productive base of the economy and move it away from its monolithic nature of oil to a more domestic and exportoriented like agriculture and capacity building; and they should be more focused in formulating monetary and other macroeconomic policies to build investors' confidence and integrity in government programme.
doi:10.5281/zenodo.3455949 fatcat:bu6wdvoc2jdh5bwzk7zz6t22uy