Managing Monetary Policy in an Environment of Fiscal Policy Dominance in the Nigerian Economy

Managing Monetary Policy in an Environment of Fiscal Policy Dominance in the Nigerian Economy

Project / Seminar Material
Reference ID: PS-7932-TM

DEDICATION

This research material titled “Managing Monetary Policy in an Environment of Fiscal Policy Dominance in the Nigerian Economy” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Economics, Book Authors and Profound Scholars of existing or related project material on “Managing Monetary Policy in an Environment of Fiscal Policy Dominance in the Nigerian Economy” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

Managing Monetary Policy in an Environment of Fiscal Policy Dominance in the Nigerian Economy

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

  • 1.0 Introduction
  • 1.1 Background to the study
  • 1.2 Statement of problem
  • 1.3 Objective of the study
  • 1.4 Hypotheses
  • 1.5 Scope of the study
  • 1.6 Types of data
  • 1.7 Sources of data
  • 1.8 Justification of study
  • 1.9 Definition of terms

CHAPTER TWO

  • Review Of Literature
  • 2.1 Introduction
  • 2.2 Role of the Autonomy of the Central Bank
  • 2.3 Appraisal of monetary policy management since the 197
  • 2.4 Fiscal dominance or Monetary management
  • 2.5 Financing fiscal Deficits
  • 2.6 Monetary and Fiscal policy conflicts
  • 2.7 Monetary policy and Fiscal behavior in Nigeria

CHAPTER THREE

  • 3.1 Theoretical Framework
  • 3.2 Methodology
  • 3.3 Model Specification
  • 3.4 Method of Data Analysis
  • 3.5 Data Requirements

CHAPTER FOUR

  • 4.0 Presentation and Interpretation of results
  • 4.1 Results

CHAPTER FIVE

  • 5.1 Summary of findings
  • 5.2 Recommendations and conclusion
  • Reference

ABSTRACT

This study sets out to examine managing monetary policy in an environment chocked up with huge fiscal deficits and public debt, high inflation rate etc, (which gives rise to fiscal dominance), in Nigerian setting during the period 1980 to 2004.

To accomplish this, statistical hypotheses were stated empirically. In chapter two, of the study, the review of various monetary policies in Nigeria was highlighted. Also there were emphasis on the fiscal policy and arguments on which of the two policies actually dominates.

The theoretical frame work was formulated and presented in chapter three.
While in the forth chapter, the model developed in chapter three was specified and estimated by the ordinary least square (OLS) technique and the Cochrane-Orcutt as a corrective measure for auto-correlation, using the annual data for the period under study.

The fifth chapter concludes with the findings of the study which are;
Firstly, the results of the model showed that the specified variables which includes; banking system holdings of public domestic debt outstanding, domestic public debt, total government expenditure and inflation rate were all significant in explaining the systematic variation in the level of money supply with the exception of the domestic public debt.

Secondly after the application of the corrective mechanism i.e. The Cochrane-orcutt measure, all variables were statistically significant except that of total government expenditure. And all the variables conformed to Apriori specification.

The study there fore points to the need for a prudent fiscal policy and monetary authorities should place more emphasis on monetary actions than on fiscal action in their drive towards stabilization of the economy.

Managing Monetary Policy in an Environment of Fiscal Policy Dominance in the Nigerian Economy

CHAPTER ONE

1.1 Introduction

… As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of technical terms.

…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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