Monetary Policy Measure As Instruments Of Economic Stabilizaiton In Nigeria

The Nigeria economy has been experiencing over the years the problems of unemployment, price level instability, lack of sustainable economic growth, balance of payment disequilibrium, inability to mobilize domestic saving and unsatisfactory expansion of domestic output.  This has lead to the introduction of instruments of monetary policy to regulate the value, supply and cost of money in an economy in consonance with the level of activity in order to avoid excess or insufficient supply of money in the economy.

The researcher is aiming at finding how far monetary policy measures have gone in stabilizing the economy of this nation, and those things that hinders its success.

In view of this, descriptive research method will be used in  collection of data, that is collecting and analyzing information on monetary policy measures from central bank of Nigeria annual report and statement of accounts, and other secondary sources.

However, finance and time would be limitation to this research work, but the researcher is hoping that at the end of this study, people will be educated on the importance of monetary policy measures as instrument of  economic stabilization in Nigeria

ABSTRACT

In general, monetary policy refers to the combination of measures designed to regulates the value, supply and cost of money in an economy in cognizance with the level of economic activity. An express supply of money which will result in an excess demand for goods and services will cause rising prices and or a deterioration of the balance of payments position.  On the other hand, inadequate supply of money could induce stagnation in the economy thereby referred growth and development.  Consequently, the central bank and the central monetary authority, must attempt to keep the money supply growing at an appropriate rate to ensure sustainable economic growth and to maintain internal and external stability.  The discretionary control of the money stock by the central monetary authority involves the expansion or construction of money influencing interest rates to make money cheaper or more expensive depending on the prevailing economic conditions and the channeling of money to priority sector.  In a nutshell, the aims of monetary policy are basically to control inflation, maintain a healthy balance of payments position for the country in-order to safeguard the external value of the  national currency and promote an adequate and sustainable level of economic growth and development.

This study therefore, delves into monetary policy measure with a view to elucidating their effectiveness as instruments of economic stabilization in Nigeria.

TABLE OF CONTENTS

Title

Certification

Dedication

Acknowledgement

Abstract

List of tables

List of chart

CHAPTER ONE

CHAPTER TWO

CHAPTER THREE

CHAPTER FOUR

CHAPTER FIVE

Reference

Bibliography