Monetary Policy And Inflation In Nigeria Economy

A PROPOSAL ON THE TOPIC: MONETARY POLICY AND INFLATION IN NIGERIA ECONOMY .

Monetary policy entails the government polices aimed at changing the quantity of money or credit condition; for example, open market operations or changes in required reserve rations etc.  monetary policy involves changes in the quantity of money held by the public.  In our Economy, there are two types of money most obriously.  The Naira bills and coins which you have in your pocket are money; you can use them to buy hunch or go to a movie.  But many purchases are not paid with” pocket money”.

Payment by cheque is very common.  Since balances in checking account are used so commonly to make purchases, they are counted as part  of the total quantity of money.  Because of the importance of checking account money, a study of money include an examinations of how the banking works.

The major idea behind monetary police can be put quite simply. When people have more money in the form either of cash in  their pocket or of balances in their checking account, the tend to spend more.

Thus, by taking steps to increase the quantity of money, the authorities can encourage spending.  But if people may to buy more than the limited available supply of  goods, the result is inflation.

Inflation therefore is defined as a high and persistent rise in price level inflation can cause business mistake for good decisions, businesses need an accurate picture of what is going on.  When prices are rising rapidly the picture became obscured and out of focus.  Decision- makers cannot see clearly.  (for example business accounting is done in Naria terms).  When then is rapid  inflation,  some businesses accounting may report profits, when on a more accurate calculation,  they might actually be suffering losses consequently, inflation can temporarily hide problems.  Our economy is complex and it depends on a continuous flow of accurate information. 

Hence, the sole aim of this project is to assess the impact of various monetary policies in Nigeria and their effect on inflationary trends.

TABLE OF CONTENT 

TITLE PAGE 

APPROVAL PAGE

DEDICATION 

ACKNOWLEDGEMENT

CHAPTER ONE 

INTRODUCTION 

1.1BACKGROUND OF THE STUDY

1.2STATEMENT OF THE PROBLEM

1.3OBJECTIVES OF THE STUDY

1.4 SIGNIFICANCE  OF THE STUDY

1.5LIMITATION OF THE STUDY

CHAPTER TWO

REVIEW OF RELATED LITERATURE 

CHAPTER THREE

3.0RESEARCH DESIGN AND METHODOLOGY 

3.1SOURCES OF DATA

3.2LOCATION OF DATA 

3.3METHODS OF DATA

CHAPTER FOUR

FINDINGS

CHAPTER FIVE

RECOMMENDATION AND CONCLUSION 

BIBLIOGRAPHY