BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420
THE IMPACT OF MONETARY POLICY MEASURES AS AN INSTRUMENT OF ECONOMIC STABILIZATION IN NIGERIA (1980 – 2010)
The study examined the impact of monetary policy in stabilizing the Nigeria economy. In the model specified inflation is the regress while cash research requirement, liquidity ratio, money supply, minimum rediscount rate, interest rate are the regressors. The government employs a deliberate manipulation of cost and availability of credit and money to achieve this economic objective. The CBN being the sole regulatory body combines measures designed to regulate the value, supply and cost of money into economic activities. This is what we call monetary policy (CBN Brief 1996/03). It is against this background that the research is carried out to ascertain the effect in the use of monetary policies such as money supply, interest rate, liquidity ratio, minimum rediscount rate, inflation rate and cash reserve requirement to stabilize the Nigeria economy. Also to determine the relationship that exists between the independent variables and dependent variable from the secondary data for the period under study (1980 – 2010). The statistical technique that will be used for this analysis is the ordinary least square technique, with the aid of PC five 8.00 software package. It has been identified that the major problem militating against the poor performance of monetary policy instruments in stabilizing the economic in Nigeria is time – lags which involves policy employed to take many months to achieve its full effects. This research recommends that there should be a reduction in the cost of production and increase the exportation in order to achieve the objectives of naira devaluation in Nigeria and also, central banks should be independent and should be able to achieve its inflation targets and the stabilization of growth rate in money supply.
1.1 BACKGROUND OF THE STUDY
Monetary policy is the process by which monetary authority of a country controls the supply of the money that is monetary stock often targeting a rate of interest for the purpose of promoting economic growth and stability.
Monetary policy measures are monetary management put in place by the government through the central bank. These measures rely on the control of monetary stocks, that is supply of money in order to influence board macro- economic objectives which includes price stability, high level of em*loyment sustainable economic growth and balance of payment equilibrium. These board objectives are achieved through the use of appropriate instrument depending on which objective the policy formulated want to achieved and also on the level of development on the economy.
In the application of monetary policy measures as instrument of stabilization, instrument of monetary policy are determined by the nature of the problems to be solved and by this environment in which these problems exist. They are broadly two categories of these instruments VIZ- indirect and direct instruments. INDIRECT INSTRUMENT are usually used in the market based on economic where the quality of money stock can affected through the relationship between supply and resume money as well as the ability of the monetary authority to influence the creation of reserved.
The reserved and hence money supply can be affected through the following ways.
In an underdeveloped financial institution the instrument of monetary management is largely limited to direct measure which set monetary and credit target at desired levels. The major DIRECT control measure is direct investment regulation however quantitative ceiling on overall credit operation is also used. These instruments of monetary policy are applied in the achievement of varied objectives.
1.2 STATEMENT OF THE PROBLEMS
The Nigeria economy has encountered the problem of disequilibrium, inability to mobilize domestic savings and unsatisfactory expansion of domestic output. These problems have consistently and presently done severe damage to Nigeria economy; but most strikingly these problems have continued to play the economy unabated that is, the economy is becoming less strong. It is against the background that the problem of this study has been identified and they are as follows.
1.3 STATEMENT OF OBJECTIVES
The objectives of the study are:
iii. To identify the factors that tends to hinder the full attainment of desired objectives.
1.4 STATEMENT OF HYPOTHESISs
The following hypothesis is been formulated to guide the study.
H0: Monetary policy measures have no impact on the economic stabilization in Nigeria.
H1: Monetary policy measures have impact on the economic stabilization in Nigeria
1.5 SIGNIFICANCE OF THE STUDY
These researches provide insight into monetary policy measures as an instrument of economic stabilization and will therefore be of valuable use to the following set of people.
iii. To investors, it will serve as a guideline on the effect of monetary policy on various sectors of the economy in which their fund can be invested.
1.6 SCOPE AND LIMITATION OF THE STUDY
This research work covers the monetary policies from (1980 – 2010). This study will cover the relationship between the individual who would wish to know about the country’s economic state, and it is hoped that it will go a long way to solve some of the economic problems as regards to monetary policies and its measure as an instrument of economic stabilization.
1.7 DEFINITION OF TERMS
Monetary stock: This is the amount of money in circulation at any point in time.
Reserve money: This refers to the amount of money, banks are required to maintain in their vaults.
Reserve ratio: This is the ratio of deposit that banks are required to maintain with the central banks.
Discount rate: This is the rate at which the central bank make loan to commercial bank as a leader of last resort. This term is used to qualify the central bank, when banks are cash trapped; it is the central bank that lends to them, whenever there is no alternative or liquidation.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420