ANALYSING MONETARY POLICY ROLES IN A IMPORT DEPENDENT ECONOMY

ANALYSING MONETARY POLICY ROLES IN A IMPORT DEPENDENT ECONOMY

Project Details

ANALYSING MONETARY POLICY ROLES IN A IMPORT DEPENDENT ECONOMY



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Description

The study analysed monetary policy role in import dependent economy with a particular focus on the Nigerian economy from 1984 and 2013. The study is imperative given the macroeconomic problem that is confronting the central bank of Nigeria particularly the problem of financing and regulating the stock of money in the economy. In an attempt to achieve the objective of the study, hypothesis was raised on the efficacy or otherwise of the monetary policy in stabilizing import dependent economy. An ordinary least squares (OLS) econometric model was formulated to validate the hypothesis. In the formulated model, economic stability was proxy by consumer price index which was made to depend on the monetary policy instrument which includes money supply, liquidity ratio and cash reserve ratio. The data for the analysis were sourced from central bank of Nigeria statistical bulletin and National Bureau of Statistics and the result of the analysis was facilitated using econometric views (E-Views) statistical and econometric package. The result of the analysis shows that monetary policy plays an insignificant negative impact in the Nigeria economy. Among others the study recommends that government should also endeavour to make the financial sector less volatile and more viable as it is in developed countries.
Key words: Monetary, Policy, Import and Dependent.
TABLE OF CONTENTS
CHAPTER ONE – INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Hypothesis
1.5 Justification of the Study
1.7 Sources of Data and Methodology
1.8 Scope and Plan of the Study
1.9 Definitions of Terms
CHAPTER TWO – LITERATURE REVIEW
2.1 Conceptual Literature
2.1.1 The Historical Background of Central Bank of Nigeria (CBN)
2.1.2 The Role of Central Banks
2.1.3. Instruments of monetary policy
2.2 Theoretical Framework
a) The Mundell-Fleming Model
b). The Algebra of MF and Flexible Exchange Rates
2.3 Empirical Literature
CHAPTER THREE – RESEARCH METHODOLOGY
3.1 Introduction
3.2 Sources and Description of Data
3.3 Restatement of Hypothesis
3.4 Model Specification
3.5 A priori Expectation
3.5 Re-statement of Hypothesis
3.7 Method of Analysis
CHAPTER FOUR – PRESENTATION AND ANALYSIS OF DATA
4.1 Presentation of Data
4.2 Presentation of Regression Result
4.3 Interpretation of result
4.4 Economic Implication of findings
CHAPTER FIVE – SUMMARY, CONCLUSION, AND RECOMMENDATIONS
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX

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