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THE ANALYSIS OF THE IMPACT OF UNEMPLOYMENT AND INFLATION ON BALANCE OF PAYMENT IN NIGERIA (1980-2010)

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THE ANALYSIS OF THE IMPACT OF UNEMPLOYMENT AND INFLATION ON BALANCE OF PAYMENT IN NIGERIA (1980-2010)

 

CHAPTER ONE

  1. O INTRODUCTION

1.1     BACKGROUND

The major goals of macro-economic policy are: to achieve full employment in other words maintain a low and stable level of unemployment. To maintain a relative stable level of price payment position at a fixed stable exchange rate of growth.

Practically, inflation which is a persistence increase in general price level is one of the macro-economic problems facing Nigeria today. According to Ewa Udu and Agu G.A it began in Nigeria during and after the Nigeria civil war (that is from 1965-1970).Before the war, there was noticeable increase in the price of so many commodities such as a bag of 50cups of rice that cast #14.00 rises to #43.00 immediately after the civil war in 1970. Also there was an increase in the price of other goods and since 1979 the rate of inflation in Nigeria has been increasing.

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