Monetary Policy Adjustments under Alternative Inflationary Conditions: The Nigerian Case
| Main Authors: | Opue, Job Agba, Bankong, B. |
|---|---|
| Format: | Article eJournal |
| Bahasa: | eng |
| Terbitan: |
, 2014
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| Subjects: | |
| Online Access: |
https://zenodo.org/record/3462848 |
Daftar Isi:
- This work provides an answer to the question: what should be the appropriate monetary policy under different inflationary conditions (that is, demand-pull and cost-push inflations) and what should be the effect of this non-distinction in the direction of monetary policy? Since no modern economy is autarky, the Nigerian economy is considered and examined analytically. Therefore, a conclusion that the problem of macroeconomic instability faced-with in countries like Nigeria, is as a result of the applications of inappropriate adjustments in monetary policy under different inflationary conditions is drawn. Thus, a recommendation that expansionary monetary policy be adopted for such countries is prescribed, but to an extent where a unit increase in cost must correspond with a unit increase in broad money supply. Likewise, such economies like Nigeria are encouraged to increase their exports and reduce imports in order to redress the problems of cost-push (imported) inflation.