The effectiveness of monetary policy measures in controlling inflation in Nigeria Department:Banking and Finance By: verao123 Project ID: 173 Rating: (2.7) votes: 315 Price:₦1000 Get the Complete MaterialAbstractOver the years, Nigeria made conscious and determined efforts to attain a high level of economic growth and development (social and economic transformation of the economy) so far. The nation has had four national development plans in which varying emphasis on development goals and objectives were articulated and pursued in order to attain the development goals, several policy measures were adopted including monetary, fiscal, exchange control, income and prices policies. The measures adopted were changed from time to time to reflect the changing economic environment and circumstance. This work focused on one of the policies which is monetary policy and this examined the efficiency of the policy measures. The basis of judging this is the achievement of the stated policy objectives and the sensitivity of economic objectives to target variables such as inflation control. The date used in the analysis of evidence came from central bank of Nigeria statistics from 1990-2007 record also indicates that inflation has been a very crucial problem in the Nigeria economy, and its causes and effects have been also in draying degree ranging from inefficiency in agricultural productions, high dependence on imported raw materials low supply in consumer good etc. of the monetary policy tools examined shows that open market operational has been dwindling from prospective participants largely because the treasury bills rates are no longer market determined, the rediscount rate are effective policy tools it has been noticed that the control of financial systems credit has been proved most effective. The research therefore reached the conclusion that monetary policy is a means to an end and not an end in itself. The instruments are therefore mere catalyze that accentuate the pace of economic development. It was also observed that the effectiveness of monetary policy is controlling inflation party depends on the instruments and the prevailing economic environment. In view of the problems inherent in the Nigeria monetary policy the researcher therefore recommend among other thing. 1. The review of the liquidly and cash reserve rate 2. Co-ordination and consistency among differing objectives 3. Flexibility in the monetary policy to counteract the establishing effects of exogenous variable and steer the economy along the desired part of socio- economic progress. 4. Increase in the price of securities in order to develop the money market so that monetary policy tools like open market operation techniques can be implemented effectively. 5. Monetary and fiscal polices should be complementary and countervailing in order to achieve that stated economic objectives. The research concluded by saying that since the pursuit of economic objectives is not achieve by monetary policy alone, it therefore does not mean that monetary policy has failed in its entirely. ...Preview Download Preview +Other Banking and Finance project topics and materials you might be interested in»The role of central bank of Nigeria (CBN) in the development of Nigeria financial sector»Appraisal of the economic implication of electronic banking in Nigerian banks (A case study of diamond bank)»The impact of strategic planning on banks performance in Nigeria (A case study of united bank for Africa plc)»Evaluation of the impact of liquidity management on banks performance in Nigeria ( A case study of UBA )»The roles of central bank of Nigeria in the prevention of bank failure or liquidation (A case study of central bank of Nigeria 2005-2009)»The role of financial institutions in promoting banking habit and saving capital formation in Nigeria»The effect of electronic banking on fraud reduction in bank (A case study of access bank plc)»The effectiveness of monetary policy measures in controlling inflation in Nigeria»Problems and challenges facing finance houses in the Nigerian economy ( A case study of mortgage bank owerri )»The role of deposit money bank in Nigeria in economy development in Nigeria - a case study of Access Bank Plc»Motivation as a way of reducing fraud in banking industry ( A case study of UBA and Fidelity bank )»Identification and management of bad debts in Nigeria commercial banks(A case study of UBA plc)»The impact of insurance industry on the economic growth of Nigeria (A case study of nicon and hallmark insurance companies 2005-2009)»The contribution and effect of computer to modern day banking in Nigeria (A case study of zenith bank and first bank plc)»The use of accounting information in assessing control and performance in an organization (A case study of first bank of Nigeria owerri)