ABSTRACT

 The study intends to evaluate the efficacy of monetary policy tools in Nigeria 1998-2006. The objective includes to evaluate the effectiveness of monetary policy instruments in the past and to establish how monetaly policy can be more effectively used to restore confidence of the populace in our declining economy. Secondary data was used and was analyzed by the use of regression. Regression was used to analyze the relationship between the monetary policy and economic growth, the significant relationship between monetary policy and investment in Nigeria and the significant relationship between monetary policy and inflation rate. Monetary policy deals with the discretionaiy control of money supply by the monetaly authorities in order to achieve stated or desire economic objective. It is the monetary authorities responsibility to establish and maintain an eliective monetaiy policy which will help the attainment of the country's goals. This research is aimed at identifying the various tools of monetary policy and their effectiveness in the past. From the research work various tools have been identified. These include Open Market Operation (OMO), reserve requirement, p moral suasion, special deposit, selective credit control etc. All these tools aimed at achieving low rate of inflation, economic growth and others. The research work is segmented into S chapters. Chapter one is the introductory part together with statement of the problem, objective of the study, research hypothesis, justification of the study and limitation of the study. Chapter two tried to review related literature. In chapter three, the research methodology was defined while the data were presented, analyzed and result discussed in chapter four. The summary of findings, conclusion and recommendation were made in chapter five.