ABSTRACT

The study examined the impact of monetary policy on the Nigerian economy. Multiple regression of ordinary least square (OLS) method of analysis was used for the analysis, and the result from the study revealed the following; that monetary policy rate had negative but significant impact on the gross domestic product in Nigeria, while cash reserve ratio had positive and significant impact on gross domestic product in Nigeria. The study therefore, concluded that monetary policy had significant impact on the Nigerian economy. Based on the findings the study hence recommended the following; that the monetary authorities should strengthen the working mechanism of the monetary policy instruments to ensure their success in helping to achieve the desired macroeconomic growth in Nigeria, and that the Nigerian monetary authorities should give priority attention to cash reserve ratio (CRR) monetary policy tool as it will produce a more desired result in terms of stabilization of the Nigerian economy.

TABLE OF CONTENTS

Title Page i 

Dedication ii

Acknowledgement iii

Declaration iv

Certification v

Table of Contents vi

List of Tables vii

Abstract viii

CHAPTER ONE: INTRODUCTION

1.1. Background of the Study 1

1.2 Statement of the Problem 3

1.3. Objectives of the Study 4

1.4. Research Questions 5

1.5. Research Hypotheses 5

1.6. Significance of the Study 5

1.7. Scope of the Study 7

1.8. Definition of Terms 7

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework 10

2.1.1. Concept of Monetary Policy and Economic Growth 10 

2.1.2. Instruments of Monetary Policy 12 

2.1.3. Monetary Policy Target and Implication to the Nigerian Economy 16

2.1.4. Framework of Monetary Policy in Targeting Inflation in Nigeria. 17

2.1.5. Factors that have Militate against the Effectiveness of  

          Monetary Policy in Nigeria 19 

2.1.6. Impact of Monetary Policy on  the Nigeria Economic Growth 20

2.2 Theoretical Framework 21

2.2.1. Classical Monetary Theory 21

2.2.2. Keynesian Theory 22

2.1.3 Monetarist Theory 22

2.3. Empirical  Review 23

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design 31 

3.2 Area of the Study 31

3.3 Population  & Sample Size 31

3.4 Sources of data 32 

3.5. Model specification 32

3.6. Techniques Analysis 33

3.7. Description of Variables 33

3.7.1. Dependent Variable: GDP 33

3.7.2. Independent Variables 33

3.8 Decision rule 34

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULT

4.1 Data presentation 35

4.2 Regression Analysis and interpretation of Result 36

4.3 Test of Hypotheses 36

4.4 Discussion of findings 38

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings 41

5.2 Conclusion 41

5.3 Recommendations 41

           References