The Role Of Monetary Policy In Combating Inflation

ABSTRACT

Various studies have reflected the relationship between the increase of money supply and the level of inflation. Generally, this is reflected by the continued rise of prices of the various products. A situation ensues where excess amounts of money tend to be chasing too few goods. In this perspective, this study tested on whether monetary policy is an effective tool in the combating of inflation. The data utilized was derived from Nigeria’s economic situations over a range of years. The period in perspective was that between the years 1985 and 2006. During this period, Nigeria faced various challenging economic events. Some instances of political instabilities, depressions, and economic recessions were vividly witnessed. In addition, the level of inflation was increasing. During this duration, various monetary policies and tools were utilized by the Central Bank of Nigeria. As such, this range was most suitable for this research. This study looked into the efficiency of monetary policy in controlling inflation in Nigeria.

TITLE

CHAPTER ONE

1.0    INTRODUCTION

1.1    STATEMENT OF THE PROBLEM

1.2    OBJECTIVE OF THE STUDY

1.3    STATEMENT OF HYPOTHESIS

1.4    SIGNIFICANCE OF THE STUDY

1.5    SCOPE OF THE STUDY

1.6    LIMITATION OF STUDY

CHAPTER TWO

LITERATURE REVIEW

2.1      THEORITICAL LITERATURE

2.1.1   AN OVERVIEW OF NIGERIAN MONETARY POLICY

2.1.2   ADMINISTRATION OF MONETARY POLICY IN NIGERIA

2.1.3   OBJECTIVE OF MONETARY POLICY

2.1.4   INSTRUMENT OF NIGERIAN MONETARY POLICY

2.1.5   OPEN MARKET OPERATION

2.1.6   THE DISCOUNT RATE AND INTEREST RATE STRUCTURE

2.1.7   CREDIT CEILING

2.1.8   STABILIZATION SECURITIES/SPECIAL DEPOSITS

2.1.9   MONETARY POLICY FORMULATION

2.1.10 EFFICIENCY OF MONETARY POLICY DURING INFLATION

2.1.11 EFFICIENCY OF MONETARY POLICY DURING DEPRESSION

2.1.12 OPERATION OF MONETARY POLICY

2.1.13 INFLATION IN NIGERIA, DEFINATION OF INFLATION

2.1.14 MONEY SUPPLY IN THE ECONOMY

1.2.15 CAUSES OF INFLATION 

2.1.16 TYPE OF INFLATION 

2.1.17 INFLATION RATE IN NIGERIA

2.1.18 MONETARY POLICY AS A CONTROL MEASURE ON INFLATION IN NIGERIA

2.1.19 EFFECT OF INFLATION

2.2     EMPERICAL LITERATRE

CHAPTER THREE

3.0     RESEARCH METHODOLOGY 

3.1     RESEARCH DESIGN

3.2     METHODOLOGY

3.3     MODEL SPECIFICATION  

3.4     METHOD OF EVALUATION

3.5     SOURCES AND DATA REQUIRED 

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF RESULTS

4.O    PRESENTATION OF RESULTS

4.1    PRESENTATION OF REGRESSION RESULTS

4.2    ANALYSIS OF RESULT

4.2.1 STATISTICAL CRITERIA (1ST ORDER TEST)

4..2.2 THE STUDENT T TEST

4.2.3  THE F - STATISTICS TEST

4.3     ECONOMETRICS TEST OF SECOND ORDER TEST

4.3.1  AUTO CORRELATION TEST

4.4     SUMMARY OF FINDING

CHAPTER FIVE

5.0     SUMMARY OF FINDING, RECOMMENDATION AND CONCLUSION

5.1     SUMMARY

5.2     CONCLUSION

5.3     RECOMMENDATION