ABSTRACT

This study macroeconomic policy as a tool for economic stabilization in Nigeria. The specific objectives includes to; investigate if a macroeconomic policy serves as a measure for economic stabilization in Nigeria, investigate if monetary policy serves as a tool for economic stabilization in Nigeria and investigate if fiscal policy serves as a tool for ecor mic stabilization in Nigeria. Data were collected from Central Bank of Nigeria's (CBN) annual : atistica. bulletin for a period of 38 years (1981 - 2018). The data collected were analyzed using Or linary Least square analytical tool. The result of the work showed that fiscal policy instruments sed are jointly significant at explaining economic stabilization in Nigeria. The result also showed tnat monetary policy instruments used are jointly significant in explaining economic stabilization in Nigeria and that macroeconomic policy co-ordination is sufficient at explaining ecor.omic stabilization in Nigeria. Based on the findings, the research made recommendations such a; that channels through which fiscal policy is transmitted should be reviewed so as its effect can be ielt in the economy for which it was meant to serve. Particular attention should be paid to the go·.rernme,-t revenue generation strategy as it can be seen that there is a positive relationship betw .en gov1;mment revenue and economic growth in Nigeria.