Monetary Policy And Capital Market Development In Nigeria:- Odo Faith C

Abstract

This study examines the impact of monetary policy and its roofs on the capital markel develupment in Nigerian economy. The study uses time-series data covering the range of JY81 - 2018. in concluding the analysis, multiple regressions were employed to analyze data on variables such as total market capitalization, money supply, interest rate. inflation and monetary policy rate. They were all found to have marginal impact on the economic growth of Nigeria. The study shows further, the aims and objectives of monetary policy, which includes price stability, maintenance of balance of payment equilibrium, full employment and economic growth, ii found that Monetary Policy Rate (MPR) has a positive and sign(ficant impact on the capital market development in Nigeria, Interest Rate (INT) has a negative and insignificant impact on the capital market development in Nigeria, and Broad Money Supply (M:) has a positive and significant impact on the capital market development in Nigeria. In summary, the study found marginal impact on growth due to change in monetary policy application. The study recommends that to fasten up the rate of growth of the Nigerian economy, the government needs to initiate and push forward effective and efficient monetary policy measures via money supply, interest rate and financial deepening in order to adequately stabilize prices, reduce poverty and inequality there by encouraging holistic macroeconomic growth.