Impact Of Monetary Policy On Nigerian Economic Growth (1981-2017):- Okorie Eze E

ABSTRACT

This study sought to examine the "Impact of Monetary Police on Nigeri Economic growth Government Intervention in the stabilization ofprice in Nigerian Economy”. To answer the research question, the study used secondary data obtainedfrom Central Bank statistical bulletin for the period of 38 years, from 1981 to 2017. The study therefore examined the influence of money supply Impact Monetary Policy Variable on the employed (CBNI), the effect ofinterest rate Monetary Policy Target Variable on domestic private investment and impact of money supply on Gross Product Proxyfor economic growth. The research design adopted the multiple regression analysis based on the classical linear regression model. Impact Monetary Policy has significant influence on the direction of aggregate prices in the economy. Again, Monetary Policy has significant nominal impact on economic growth in Nigeria. However, the study shows Monetary Policy has not influenced investment through interest rate. Incidentally, the bane of Monetary Policyperformance through its interest rate channel is due to the huge presence ofthe government in the money market for fund borrowing. The study therefore recommends the federal government through the Central Bank ofNigeria evolve appropriate policy to discourage the government (state and otherwise) participation in the money markets as borrower among others.