ABSTRACT
Effectiveness of monetary policy in stimulating economic growth
This study investigates the effectiveness of monetary policy in stimulating economy
growth in Nigeria using AK production Function and Vector Autoregressive (VAR) model.
The empirical evidence depicts that economic growth in Nigeria is influenced by money
supply, electric power consumption, gross fixed capital formation and trade openness. This
shows that monetary policy is effective in maintaining economic growth on the long run. The
impulse response function revealed that economic growth (GDP) respond to itself and does
not respond to other variables like Consumer Price Index (CPI), Broad Money Supply (M2),
Interest Rate (IR), Exchange Rate (ER) in some period, while in some period economic
growth (GDP) respond to itself and other variable. The Granger causality test showed that
there exist unidirectional, bilateral and independence causality. Thus Nigerian government
through its monetary authorities should fine-tune the economy by incorporating other
policies that will influence economic growth not only in the long run but also, in the short
run period. This will go a long way in contributing to higher sustainable economic growth.
INNOCENT, E (2021). Effectiveness Of Monetary Policy In Stimulating Economic Growth In Nigeria. Afribary. Retrieved from https://afribary.com/works/effectiveness-of-monetary-policy-in-stimulating-economic-growth-in-nigeria
INNOCENT, EMECHETA "Effectiveness Of Monetary Policy In Stimulating Economic Growth In Nigeria" Afribary. Afribary, 05 May. 2021, https://afribary.com/works/effectiveness-of-monetary-policy-in-stimulating-economic-growth-in-nigeria. Accessed 24 Nov. 2024.
INNOCENT, EMECHETA . "Effectiveness Of Monetary Policy In Stimulating Economic Growth In Nigeria". Afribary, Afribary, 05 May. 2021. Web. 24 Nov. 2024. < https://afribary.com/works/effectiveness-of-monetary-policy-in-stimulating-economic-growth-in-nigeria >.
INNOCENT, EMECHETA . "Effectiveness Of Monetary Policy In Stimulating Economic Growth In Nigeria" Afribary (2021). Accessed November 24, 2024. https://afribary.com/works/effectiveness-of-monetary-policy-in-stimulating-economic-growth-in-nigeria