Monetary Policy Instrument And Sustainable Economic Growth In Nigeria (1980-2014)

ABSTRACT

This study examined monetary policy instrument and economic growth in Nigeria between the periods of 1980-2014. The main objective of this study is to analyze the effectiveness of monetary policy instruments and sustainable economic growth in Nigeria and i/s role in returning the economy hack to equilibrium an inflationary imbalance. In carrying out this research, secondary data was used on E-views8 version to regress the model with GD? as the dependent variable and money supply, monetary policy rate and liquidity ratio as the independent variable. the study was sourced from the CBN statistical bulletin. From the analysis result it was revealed that there was a positive relationship between money supply and gross domestic product (GD?,.) while monetary policy rate and liquidity ratio is negatively related to GD?. 71-me study recommended that there is a need to deepen the financial system in Nigeria through improved financial infrastructure as underdeveloped financial market constrains and also /or effective operation of the monetary policy measures in the Nigeria economy the ('RN should he granted autonomy on its monetary functions.