This study,MONETARY POLICY AND INFLATION IN NIGERIA ECONOMY contains concise information that will serve as a framework or guide for your project work. The project study is well-researched for academic purposes and are usually provided in complete chapters with adequate References.
This research work is an attempt to examine the role of Central Bank of Nigeria in the monetary policy and inflation of Nigeria Economy. The research work provide a background to the origin and formation of Monetary policy in fighting inflation and highlighted the major functions and activities performed by the Central Bank of Nigeria in order to achieve their main objectives.
TABLE OF CONTENTS
1.0 Introduction –
1.1 Background of the Study
1.2 Statement of the problem
1.3 Specific Objective
1.4 Research Hypothesis
1.5 Significance of the study
1.6 Scope and Limitation of the study –
1.7 Organizational Structure of the study
1.8 Definition of some key terms
2.0 Literature review
2.1 Relevant Concept and theories
2.2 Definition of Monetary Policies
2.3 Definition of inflation
2.4 Instrument of Monetary Policies
2.5 Types of Monetary policy
2.6 Expansionary monetary policy
2.7 Contractionary Monetary Policy
2.8 Objective of Monetary Policy
2.9 Problems Militating against an Effective Monetary Policy in Nigeria
2.10 Relationship between monetary policy and inflation –
2.11 Types of Inflation
2.12 Causes and effects of Inflation
2.13 Control of Inflation
2.14 Central Bank of Nigeria and its reasons
2.15 Role of Central Bank in process of controlling Inflation
2.16 Use of Monetary Policy in control of Inflation by Central
Bank of Nigeria Price Control Measures
2.17 Summary and conclusion of chapter
3.0 Research Methodology
3.2 Method of Data Collection –
3.3 Sources of data Collection
3.4 Types of data
3.5 Method used in data collection
3.6 Population and sample size
3.7 Justification of choice
4.0 Data Presentation, Analysis and Interpretation
4.2 Data Presentation
4.3 Techniques used in testing hypothesis
4.4 Testing Hypothesis
4.5 Research finding and their validity
4.6 Summary of findings
5.0 Summary, conclusion and recommendation
5.1 Summary of the study
5.2 Conclusion Renark
5.3 Policy Recommendations and suggestion for the study
Monetary policy entails the government policies aimed at changing the quantity of money or credit condition. In every economy, after fiscal policy, the next most powerful macro-economic stabilization is monetary policy.
In fact Monetary and fiscal policies are expected to work together as complements to achieve one goals of a sound macro economic management that include amongst other domestic price stability external sector viability as well as enhance efficiency in resource allocation, distribution and utilization.
Monetary policy is therefore measure designed to regulate and control the volume, cost, availability and direction of money and credit in an economy to achieve some specifically micro-economic objectives. It is one policy that seeks to influence economic activities using the tools available to the central bank i.e. money supply (MS) interest rates and exchange rates. It can also mean the deliberate attempt by the authorities to either control the supply of money or to control interest rates or to ration the amount of credit granted by banks.
1.1 HISTORICAL BACKGROUND OF THE STUDY
The history of economic growth shows that, economic transformation started in England in the Late eighteen century and gradually spread to other parts of Europe and North America. Economic transformations did not get to other parts of thee world until in the 1950s when Japan transformed to become one of world’s major industrial giants. This economic transformation has spread far and wide in the recent times but its spread is highly limited in Africa. It is only South Africa that has experienced it so far. This is clearly demonstrated by the World Bank report of (2001) which states that out of the 46 poorest countries in the World, 35 of them are in Africa.
Nigeria with it’s vast resources of both human and material nature is not left out of the club of poverty stricken countries. This poverty is illustrated by the recent World bank report (2005), which says that more than 70% of Nigerians are living below poverty line.
It is against this background that this study is being undertaken. This poverty can be tackled using both fiscal and monetary policies to help solve this problem and growing poverty. So far, removing the country from poverty trap that seems almost impossible to be solved using variety of macro-economic policy measures.
1.2 STATEMENT OF THE PROBLEM
The problem of inflation in Nigeria has been confronted in variety of ways by the government of the country using different macro-economic policies. The government introduced several measures e.g. National Development Structural adjustment Programmes (SAPs). Guided Deregulation etc. to combat this problem. Despite all these measures, we still experience inflation in the country.
The question now is, why we still experience inflationary conditions after all these variety of measures adopted by the government to control it or reduce it intensity?
Moreover, the issue of monetary policy has its objectives one of which is tackling the problem of inflation. The Central Bank applied all measures to control it still every effort seem to be fruitless.
The nest question is why have all these measures failed in combating the problem of inflation?
1.3 SPECIFIC OBJECTIVE
I’m specifically writing this project in partial fulfilment towards the award of Higher National Diploma (HND) in accountancy.
Other genera objectives of the study include the following among others:
To provide the readers with broad knowledge of the different activities carried out by the Central Bank of Nigeria in Nigeria’s macro-economic stabilization process.
Enlighten students, readers and researchers on the significance of Central Bank of Nigeria and it’s role in the process of Nigeria economic development.
To highlight the relevance of monetary policy in combating inflation.
Try to explain the various types of monetary policy that can be used to combat inflation and other macro-economic problems.
Identify and discuss the monetary policy problems with particular reference to Nigeria.
To explain the various instruments of monetary policy that can be used to combat inflation especially in less developed Countries (LDCS) such as Nigeria.
1.4 RESEARCH HYPOTHESIS
The following hypothesis have been put forward to guide research work
Ho1: Monetary Policy is not an effective tool of macro-economic stabilization of an economy.
Hi1: Monetary Policy is a very effective tool of macro-economic stabilization of an economy.
Ho2: Money supply has no impact on the Level of economic activities and growth.
Hi2: Money supply has an impact on the level of economic activities and rate of growth.
Ho3: Central Bank of Nigeria’s monetary and credit Policy guidelines and money supply do not have impact on the level of outputs.
Hi3: Central Bank of Nigeria’s monetary and credit Policy guidelines and money supply do have impact on the level of outputs.
1.5 SIGNIFICANCE OF THE STUDY
However, this research work will assist the economy to derive possible solution to the research problem e.g. control of inflation using monetary policy measures as adopted by the monetary authorities of the Central Bank.
Furthermore, the research ex-rays the various types of monetary policy measures, which can be used to combat the problem of unstable economy and prices, and as a result will be a kind of research materials to those in various fields may be of Immense use of future researchers
Government will benefit immensely from this research works as the topic is very relevant in the field of macro-economic policy formulation.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
This project covers the role of monetary policy and it’s controlling inflation in the Nigeria economy. A general overview of monetary policy and inflation in the Nigerian economy is the foundation upon which the project is developed.
However, study of this nature is known to be subject to a number of problems or constrains, which are peculiar to the Nigerian society such as financial constraints. This research work was not an exception the problem of visiting the Central Bank of Nigerian and some other places for data collection involved spending a lot of money or transport expenses.
Hence, the predicament of the overage students can therefore be imagined.
Furthermore, the issue of office protocols time limit, secrecy inadequate research materials also were some setbacks to the researchers in carrying out this research.
1.7 ORGANIZATIONAL STRUCTURE OF THE STUDY
A Central Bank is a financial institution owned by the government of a nations run by Board of Directors, Chaired by Governor appointed by the government and charged with the responsibility of managing the expansion and contraction of the volume, cost and availability of money in the interest of public welfare. It is primarily a non- profit entity in U.S. it is called the Federal Leisure while in the U.K. it is the bank of England.
1.8 DEFINITION OF TERMS
10.Economic Life Cycle: This refers to a view of product design, each stages of the product’s life is assessed in terms of cost, at each stage of this life cycle choice have to be made.
Have you made payment for this project? If YES, Get a Download Code by contacting our Customer Care.