MONETARY POLICY TRANSMISSION MECHANISM IN NIGERIA: AN OVERVIEW

Kalu Uma, Benson M. Ogbonna () and Paul Obidike ()
Additional contact information
Benson M. Ogbonna: Department of Economics, Abia State University, Uturu, Abia State
Paul Obidike: Department of Accountancy, Management & Entrepreneurial Studies, Federal University Ndufu Alike Ikwo

No 702180, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The paper highlights monetary policy transmission mechanism in Nigeria focusing on empirical studies and happenings in the country that retarded the efficiency of the Central Bank of Nigeria over the years in the pursuant of effective transmission mechanism. The empirical reviews from studies show that interest rate, credit channels and exchange rate are among the channels of monetary policy transmission to the economy. It also highlights some of the problems that imposed a serious debility to effective transmission in Nigeria. The authors made some suggestions for improvement, among which includes: the Central Bank must persevere legally, morally and otherwise to make the economy a cashless one. The low patronage of banking services by many Nigerians is a stumbling block in effective control of money supply and has contributed to incessant inflation in the country; any form of disguise or indirect interference by the government has to be put to an end; and the instruments of monetary policy such as interest rate and exchange that are known to be effective in some sectors should be properly managed and monitored.

Keywords: Mechanism; monetary; overview; policy; transmission (search for similar items in EconPapers)
JEL-codes: E52 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2014-10
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Published in Proceedings of the Proceedings of the 12th International Academic Conference, Prague, Oct 2014, pages 1334-1350

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https://iises.net/proceedings/12th-international-a ... d=7&iid=145&rid=2180 First version, 2014

Related works:
Working Paper: MONETARY POLICY TRANSMISSION MECHANISM IN NIGERIA: AN OVERVIEW (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:0702180

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