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MONETARY POLICY AND ECONOMIC DEVELOPMENT: LESSONS FROM THE DEREGULATION POLICY IN NIGERIA
Abstract
This paper examines the impact of monetary policy instruments on the economic development in Nigeria during the period 1980-2006.With the aid of the t-ratio, the study revealed that only two out of the six selected explanatory variables exert a significant impact on the level of economic development in Nigeria between the study periods (pre-and-postderegulation). The study therefore, concludes that with the insignificant nature of most of the variables, policy formulation and implementation inconsistencies appear to hinder the full impact of monetary policy on the economy and therefore, should be critically watched.
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