ABSTRACT
This research work focus on the appraisal of Macroeconomic
Policy on Inflation in Nigerian Economy, also to determine how it enhances the
growth of Nigerian Economy.
The aim of this research work is to look into challenges
and numbers of hypothesis were drawn. Information necessary to address the test
of hypothesis was gathered through secondary data, source from Central Bank of
Nigeria (CBN).
Economic analysis was used to formulate the three (3)
models that were stated in this research work. Multiple regressions were also
used to test the appraisal of Macroeconomic Policy on Inflation in Nigerian
Economy. The findings of this research show that macro-economic policy as a
tool for Economic Policy and Growth as a Positive Effect on the Growth in
Nigeria. In conclusion, government should ensure that operational
problems are tackled prior to sale so that there would not be any barrier
hindering the high degree of efficiency that is associated with the stability
of the Nigerian economy.
TABLE OF CONTENTS
CHAPTER ONE:
1.1 Introduction
1.2 Statement of Problems
1.3 Objective of the Study
1.4 Research Questions
1.5 The Statement of Hypothesis
1.6 Research Methodology
1.7 Significance of the Study
1.8 The Scope and Limitation of Study
1.9 Organisation of the Study
1.10 Definition of Terms
References
CHAPTER TWO:
Literature Review
2.1 Meaning and Objectives of fiscal and monetary policy
2.2 Issues in Fiscal and Monetary Policies
2.3 Keynes Debate on Monetary and Fiscal Policies
2.4 The Impact of Monetary and Fiscal Policies on the Nigerian
Economy
2.5 The Theories of Monetary and Fiscal Policies
2.6 The Relationship between Monetary and Fiscal Policies the ISLM
Framework
2.7 Mathematical Graphical Derivation of ISLM Schedule
2.8 Measure for the Improvement of the Monetary and Fiscal Policies
in the Nigerian Economy
References
CHAPTER THREE:
Research Methodology
3.0 Introduction
3.1 Methods of estimation of analysis
3.2 Model Specification
3.3 A Priori Expectation
3.4 Specification Bias
3.5 Limitation of the Study
3.6 Specification of Data
References
CHAPTER FOUR
Presentation and Analysis of
Data
4.0 Introduction
4.1 Restatement of Research Problem
4.2 Regression Analysis
4.3 Interpretation and Analysis of Results
4.4 Data for regression
References
CHAPTER
FIVE
Summary Conclusion and
Recommendations
5.0 Summary of the Findings
5.1 Recommendations
5.2 Conclusion
Bibliography
Appendix
CHAPTER ONE
1.1 INTRODUCTION
Over the years, Nigeria has made conscious and determined efforts
to attain a high level of social and economic
transformation of the economy in order to attain the
development goals and including monetary policy, fiscal, policy, exchange control
measures and income and price control. The measures adopted were changed from
time to time to reflect the changing economic environment and circumstances.
This work focuses on two of the policies adopted (monetary
and fiscal policy) and examines their uses for economic growth and stability in
Nigeria. Since the main burden of aggregate economic policy must fall on either
monetary policy and fiscal policy or a combination of both.
The question arises as to whether to clear cut distinction
can be made between policies which are termed "MONETARY" are those which
are to be called “FISCAL”. The truth is
that considerable ambiguity about these terms exist and this often leads to
useless debate and confusion.
However, monetary policy can be as a measure which deals
with the discretionary control of money supply by the monetary authorities with
a view of achieving stated economic' objectives. In other words, it employs the
use of variation in the money supply to achieve economic objectives.
Fiscal policy on the other hand may be defined as the
policy pursued by a government to influenced economics activities in economy by
changing the size and content of taxation, expenditure and public debt with a
view to achieving given objective. Although, there two policies are independent
tools of 1conomics stabilization, they are often combined by most countries for
a greater effect on the economy.
Monetary and Fiscal policies as adopted in Nigeria have
four broad objectives. The objectives include:
·
Maintenance of
relative stability in domestic price
·
Attainment of a high
and sustainable rate of economic development
·
Maintenance of
balance of payment equilibrium growth and stability are so closely related that
the economic policy of the government should include both of them.
Economic growth may be judges from the growth it total
output of the economy as measured by annual increases in net national rod, ct
in constant price. Such a measure tells us how much bigger the total economy is
becoming over a period of time, but it tells nothing about changes in the
standard of living of the people in the economy.
The more significant measures in the growth in real net
national product divided by the number of people in the population. There are
many targets of economic growth and development. They includes
·
Income distribution
Gross national product Sectoral development (such as agriculture industries
etc)
·
The pressure to
attain economic stability or our economic is so strong that measures to promote
federal government fidget.
·
To achieve the maximum
practicable rate of growth, this is necessary to have stability. This does not
mean a perfectly smooth rate of growth, but one that is not interrupted by I recessions and
depression.
·
Stabilization
policies that are usually released annually concerns attempts to stabilize the
level of national income by ensuring that serious inflationary and deflationary gaps do not persist so
that something close to full employment without rapid inflation can be
achieved.
The government uses the instruments of monetary and fiscal
policies to influence economic growth and development. The instrument of
monetary policy available to the Nigeria monetary authorities include:
·
Rediscount rate
·
Interest rate
structure
·
Reserve requirement
·
Direct credit
control
·
Exchange rate and
·
Moral suasion
Some of the Fiscal policies relating to economy a growth
and stability in Nigeria include: tax incentives (capital allowance, income tax
relief, reconstruction tax exemption etc. relief from import duties, tariffs measures and budgetary measures.
The government uses the instruments in achieving economic growth and stability.
1.2 STATEMENT OF PROBLEM
This study is basically aimed at
- Has there been effort to study the
monetary and fiscal policies used by the Central Bank of Nigeria (CBN) in
achieving economic growth and stability.
- The ability to access the effectiveness
of monetary and fiscal policies.
- Has there been recommendation to correct
observed mistake by (CBN). If done, this will enable the monetary authorities
to make optimal use of various monetary and fiscal tools at their disposal for
rapid economic growth and stability.
1. 3 AIM AND OBJECTIVES OF THE STUDY
The general aim of this study is to examine the real
problem of macroeconomic policy in Nigeria and propose some stabilization policies.
While specific objectives are:
1. To study the monetary and fiscal policies;
used by the Central Bank of Nigeria (CBN) in achieving economic growth and
stability.
2. To asses the
effectiveness of monetary and fiscal policies
3. To make recommendation to correct observed
mistake by the Central Bank of Nigeria (CBN) this will enable the monetary authorities to make optimal use of the various monetary
and fiscal tool at their disposal for rapid economic growth and stability.
1.4 RESEARCH
QUESTIONS
·
Can monetary and
fiscal policy be used as a tool to achieve economic growth?
·
Could monetary and
fiscal policy assess the effectiveness of monetary and credit policies?
·
Does the policies of
the Central Bank useful to achieve rapid economic growth and stability?
1.5 THE STATEMENT OF HYPOTHESIS
HYPOTHESIS 1
Ho: That
monetary Policy does not achieve economic growth and stability.
HA: That monetary policy achieves economic growth and
stability.
HYPOTHESIS
2
Ho: That effectiveness of monetary and credit
policies could not be assess using the monetary policy.
HA: That effectiveness of monetary and credit
policies could be assess using the monetary policy.
HYPOTHESIS 3
Ho: That the policies of the Central Bank could not be
use to attain rapid economic growth and stability?
HA: That
the policies of the Central Bank can be used to attain rapid economic growth
and stability?
1.6 RESEARCH METHODOLOGY
The research work makes use of secondary data obtained
from various institution and publication. The data was obtained from Central
Bank of Nigeria (CBN) Federal Office of Statistics (FOS), various publications
from local and international journal. The search work will be tested using
regression analysis; ordinary least square method was used in construction the
model.
1.7 SIGNIFICANCE OF THE STUDY
It is hope that this research work will be practically and theoretical
significant to the household, firm and government and for the improvement of
the whole economy. There is no doubt at this study will benefit quit a number
of people especially units involved .
1. 8 THE SCOPE AND LIMITATION OF STUDY
This study macro economic
tools measure under the period of Structural Adjustment
Programme (SAP) and mid seventy's (70's) (978-2008)
also in examining how effective and efficient the macro economic tools
measures have change in the economy since 1970's, only the activities of
commercial, merchant, special banks and central bank will be used.
This was done through looking into the financial
indicators in the economy.
- The number
of banks in operation
- Money
stock in the economy
Growth of credit allocation Banks loan and advances Growth
of bank loans and advances Average interest rate (%).
A detail of this is in the date analysis which should be
treated in further study. Most of the information and data used was collected
mostly from Central Bank of Nigeria (CBN) through their annual reports
bulleting and statement of account. This study shall be carried out exclusively
in relation to the Nigeria economy.
\
This study as comprehensive as possible except for some constraints
encountered during the course of study. There was a problem of time limit for
the completion of the work. The regroup and hectic academic programmes which
coincides with exams and period of the study or research was impediment.
Inadequacy of data was also major constraint other
limitations of the study are time period under study and lack of current year
data.
1.9 ORGANISATION OF THE STUDY
The project is structured into five chapters:
Chapter
One dealt with the introduction
which includes brief description of Nigerian Economy, Area of merger in the
economy, Relevant and Significance of the study, Definition of terms, Scope and
Limitations.
Chapter
Two is mainly the Literature Review
and Theoretical Frame Work of the study, the meaning and definition of Merger, motives
of Merger and Acquisition, Merger game and the effect on economy.
Chapter Three based
on the research method this include method of data collection, hypothesis to be
tested and the statistical tools that are to be used.
Chapter Four
dealt with the research methodology, data preparation and
analysis.
Chapter Five
is the Summary, Recommendation and Conclusion of the
research study.
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