INTRODUCTION
Inflation has been a purpose facing many countries of the world especially the developing countries. It started during the early 60s, which results to the incorporation of economic policies as measures to reduce the effect of the inflation in the economy. And most of these measures taken by developing countries to check the problem of inflation are in the form of the use of central bank instruments of credit control. This is aimed at reducing the volume of money in circulation and maintaining it to ensure low cost of living.
Nigeria as other developing countries is also faced with the problem of inflation. In Nigeria inflation has a problem for policy makers since the 1990s. And ever since then to date the rate of inflation is on the increase.
In defining what inflation is various perspectives from different economists are as follows:
1. Whereby too much money is chasing two few goods
2. Whereby there is a fall in the purchasing power of money.
3. Where there is an increase in the amount of money in circulation.
4. Where there is an excess of wage clearing over productivity growth.
For the purpose of this study inflation is defined according to Ben Chukwuemeka Anibueze Banking Practice volume three as a sustained rise in the general level of prices of most goods and services that is to say that there is always and increase in price without inflation.
The causes of inflation in Nigeria can be attributed to four major factor which are money supply, the nature of government expenditure and policy, limitation in real output and strong influence of imported inflation.
The supply of money would be affected due to increansement in wages and salaries especially if there is no increansement in productivity and also increansement in petroleum pump price which the federal government has initiated can also result to inflation.
Also, government expenditure can create or increase the rate of inflation.
This is due to some uavaidulde government consumption expenditure on the economy.
TABLE OF CONTENTS
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 PROBLEM OF THE STUDY
1.3 OBJECTIVE OF THE STUDY
1.4 SIGNIFICANCE OD THE STUDY
1.5 SCOPE AND LIMITATION OF THE STUDY
1.6 DEFINITION OF TERMS.
1.7 REFERENCES
CHAPTER TWO: REVIEW OF RELATED LITERATURE.
2.1 AN OVERVIEW OF THE CBN CREDIT INSTRUMENT FOR INFLATION CONTROL THROUGH ITS’ MONETARY POLICY.
2.2 OBJECTIVES OF MONETARY POLICY ON INFLATION.
2.3 THE ROLE OF MONETARY POLICY ON INFLATION
2.4 INFLATION CONTROL THROUGH BANKING OPERATION
2.5 MONETARY / CREDIT FUNCTION
2.6 INSTRUMENTS OF MONETARY (CREDIT) CONTROL USED BY THE CBN TO CONTROL THE AMOUNT OF MONETARY OF INFLATION IN CIRCULATION
2.7 CAUSES OF INFLATION IN NIGERIA
2.8 EFFECT OF INFLATION IN NIGERIA.
REFERENCES.
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 RESEARCH APPROVAL
3.2 SOURCES OF DATA
3.3 METHOD OF INVESTIGATION
3.4 LOCATION OF DATA
CHAPTER FOUR:
SUMMARY OF FINDING.
4.1 Summary of finding.
CHAPTER FIVE:
5.1 RECOMMENDATIONS
5.2 CONCLUSION
BIBLIOGRAPHY.
Inflation has been a purpose facing many countries of the world especially the developing countries. It started during the early 60s, which results to the incorporation of economic policies as measures to reduce the effect of the inflation in the economy. And most of these measures taken by developing countries to check the problem of inflation are in the form of the use of central bank instruments of credit control. This is aimed at reducing the volume of money in circulation and maintaining it to ensure low cost of living.
Nigeria as other developing countries is also faced with the problem of inflation. In Nigeria inflation has a problem for policy makers since the 1990s. And ever since then to date the rate of inflation is on the increase.
In defining what inflation is various perspectives from different economists are as follows:
1. Whereby too much money is chasing two few goods
2. Whereby there is a fall in the purchasing power of money.
3. Where there is an increase in the amount of money in circulation.
4. Where there is an excess of wage clearing over productivity growth.
For the purpose of this study inflation is defined according to Ben Chukwuemeka Anibueze Banking Practice volume three as a sustained rise in the general level of prices of most goods and services that is to say that there is always and increase in price without inflation.
The causes of inflation in Nigeria can be attributed to four major factor which are money supply, the nature of government expenditure and policy, limitation in real output and strong influence of imported inflation.
The supply of money would be affected due to increansement in wages and salaries especially if there is no increansement in productivity and also increansement in petroleum pump price which the federal government has initiated can also result to inflation.
Also, government expenditure can create or increase the rate of inflation.
This is due to some uavaidulde government consumption expenditure on the economy.
TABLE OF CONTENTS
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 PROBLEM OF THE STUDY
1.3 OBJECTIVE OF THE STUDY
1.4 SIGNIFICANCE OD THE STUDY
1.5 SCOPE AND LIMITATION OF THE STUDY
1.6 DEFINITION OF TERMS.
1.7 REFERENCES
CHAPTER TWO: REVIEW OF RELATED LITERATURE.
2.1 AN OVERVIEW OF THE CBN CREDIT INSTRUMENT FOR INFLATION CONTROL THROUGH ITS’ MONETARY POLICY.
2.2 OBJECTIVES OF MONETARY POLICY ON INFLATION.
2.3 THE ROLE OF MONETARY POLICY ON INFLATION
2.4 INFLATION CONTROL THROUGH BANKING OPERATION
2.5 MONETARY / CREDIT FUNCTION
2.6 INSTRUMENTS OF MONETARY (CREDIT) CONTROL USED BY THE CBN TO CONTROL THE AMOUNT OF MONETARY OF INFLATION IN CIRCULATION
2.7 CAUSES OF INFLATION IN NIGERIA
2.8 EFFECT OF INFLATION IN NIGERIA.
REFERENCES.
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 RESEARCH APPROVAL
3.2 SOURCES OF DATA
3.3 METHOD OF INVESTIGATION
3.4 LOCATION OF DATA
CHAPTER FOUR:
SUMMARY OF FINDING.
4.1 Summary of finding.
CHAPTER FIVE:
5.1 RECOMMENDATIONS
5.2 CONCLUSION
BIBLIOGRAPHY.