ABSTRACT

The study evaluated the impact of monetary and fiscal policy on unemployment using time series from 1992 to 2016. Monetary policy rate, money supply and government expenditure were the monetary and fiscal policies variables included in the model. The data was analyzed with the aid of regression analysis. The results showed that government expenditures and money supply were significant while monetary policy was not significant. Hence, it was recommended that the government of Nigeria need to make deliberate efforts to expand its expenditure by increasing its financial grants to unemployed youths in the country for productive ventures.

TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of Contents vi

Lists of Tables vii

Abstract viii

CHAPTER ONE

1.0 Introduction 1

1.1 Background of the Study 1

1.2 Statement of the Problem 2

1.3 Objectives of the Study 4

1.4 Research Questions 4

1.5 Research Hypotheses 4

1.6 Significance of the study 5

1.7 Scope of the Study 5

1.8 Limitation of the Study 6

1.9 Definition of Terms 6

CHAPTER TWO

2.0 Review of Related Literature 7

2.1 Conceptual Framework 7

2.1.1 Concept of Fiscal Policy 7

2.1.2 The Difference between Fiscal and Monetary Policy 9

2.1.3 The Role of Fiscal and Monetary Policy in the Stabilization of the Economic Cycle11

2.1.4 The Relation between Fiscal and Monetary Policy 13

2.1.5 Monetary Policy 15

2.1.6 Objectives of Monetary Policy 16

2.1.7 The Instruments of Monetary Policy 17

2.1.8 Challenges of Monetary Policy  18

2.1.9 Effectiveness and Growing Importance of Monetary Policy 18

2.1.10 Types of Fiscal Policy 20

2.1.11 Instruments of Fiscal Policy  21

2.1.12 Fiscal and Monetary Policy and Unemployment in Nigeria 22

2.1.13 Fiscal and Monetary Policies in Nigeria 23

2.2 Theoretical Framework 25

2.2.1 Keynesian Theory of Monetary Policy 25

2.2.2 The Macroeconomic Theory of Fiscal Policy 25

2.3 Empirical Review 27

CHAPTER THREE

3.0 Research Methodology 32

3.1 Research Design 32

3.2 Area of the Study 32

3.3 Sources of Data 32

3.4 Population of the Study 32

3.5 Model Specification 32

3.5.1 Description of Variables 34

3.6 Analytical Techniques 34

CHAPTER FOUR

4.0 Presentation of Data, Analysis and Discussion 36

4.1 Presentation of Data 37

4.2 Descriptive Analysis 37

4.3.1 Hypothesis testing 38

4.3.2 Discussion of Findings 39

CHAPTER FIVE

Summary of Findings, Conclusion and Recommendations 40

5.1 Summary of Findings 40

5.2 Conclusion 40

5.3 Recommendations 40

References 43

Appendix 48