A dynamic macroeconomic model of the Nigerian economy with emphasis on the monetary sector
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | A dynamic macroeconomic model of the Nigerian economy with emphasis on the monetary sector | |
| Creator | Udah, Enang Bassey | |
| Description | The dynamic nexus between money supply, fiscal deficit, inflation, output and exchange rate management has recently generated much debate in economic literature in Nigeria. To contribute to this debate, this paper uses the co-integration and error correction framework of analysis and also conducts policy simulation experiments to investigate how monetary variables interact with aggregate supply, demand and prices in order to aid stabilization policies. The results show that monetary variables and government finance are linked through governments net indebtedness to the banking system. The simulation results show that a 20 per cent monetary squeeze would reduce the inflation rate faster than if the reduction in money supply were 10 per cent. This reduction in money supply would also lead to a reduction in output, employment and government expenditure, which may hurt the domestic economy. The paper thus concludes that there is a trade-off between higher GDP growth and inflation in Nigeria. | |
| Publisher | AOSIS Publishing | |
| Date | 2011-08-12 | |
| Identifier | 10.4102/sajems.v12i1.259 | |
| Source | South African Journal of Economic and Management Sciences; Vol 12, No 1 (2009); 28-47 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/259/83
|
|
ADVERTISEMENT
