EFFECTIVENESS OF CBN MONETARY POLICY IN THE CONTROL OF UNEMPLOYMENT IN NIGERIA

ABSTRACT

Monetary policy has a central role in macro-economic management. Therefore this work tries to asses the effectiveness of CBN monetary policy in the control of unemployment in Nigeria (2000-2011). The effectiveness of any policy is measured by the external it tries to achieves its objectives. The assessment of the policy was made using one out or the three key policy objectives which is unemployment.  In achieving the above objectives, information was sourced from both primary and secondary data.  Others issues whose facts were already documented were collected and analyzed using simple statistical tools, determined by the use of regression and correlation. Descriptive data on unemployment rate, interest rate, reserve, ratios and OMO formed the variables. Findings made include among other, that direct credit control will have no impact upon employment when repercussion effects are ignored because of the automatic and equal loss of foreign exchange reserves and there is also a positive relationship between relationship between open market operation and unemployment and the researcher discovered that the policies adopted by CBN in controlling unemployment were not effective as a result of political instability bribery and corruption and based on that various recommendations were made.    
 

TABLE OF CONTENTS
 Title page          i
Approval page          ii
Dedication          iii
Acknowledgement         iv
Abstract           v
Table of content         vi

CHAPTER ONE
INTRODUCTION
1.1 Background of the study      1
1.2 Statement of the study      7
1.3 Objectives of the study     8
1.4 Research questions       9
1.5 Research hypothesis       10
1.6 Significant of the study      11
1.7 Scope and limitation of the study   12
1.8 Definition of terms       12
References          13

CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction        16
2.2 Brief history of unemployment in Nigeria   16
2.2 What is monetary policy      19
2.3 The instrument of monetary policy    21
2.4 Objectives of monetary policy     22
2.5 Open market operational and unemployment   25
2.6 Interest rate        31
2.7 Interest rate and unemployment    33
2.8 Determination of interest rates     34
2.8.1 Impact of market forces on interest    38
2.9 Cash reserve requirement and reserve
requirement (tool used by CBN to control
unemployment         41
2.9.1 Liquidity ratio        47
2.10 Impact of direct credit control in controlling unemployment        51
2.10.1Credit guidelines       54
References        61

CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction        62
3.1 Source of primary data     62
3.2 Source of secondary data    63
3.3 Collection of data     63
3.4 Method of data analysis     63
3.5 Estimate of model      64
3.6 Evaluation of the model     65
3.7 Co-effiency of determination    66
3.8 The standard error test     67
     References       68

CHAPTER FOUR
4.0 PRESENTATION AND DATA ANALYSIS  69
4.1 Introductions        69-86

CHAPTER FIVE
SUMMARY OF FINDINGS      87
5.2 Conclusion         89
5.3 Recommendation       90
Bibliography            94