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THE ROLE OF MONETARY POLICY IN THE CONTROL OF INFLATION IN NIGERIA WITH REFERENCE TO CENTRAL BANK OF NIGERIA (CBN).

  • Department: ACCOUNTING
  • Chapters: 1-5
  • Pages: 64
  • Attributes: primary data
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TABLE OF CONTENTS

Title Page                                                                               '

Certification                                                                           "

Dedication                                                                              "'

Acknowledgement                                                                 IV

Abstract                                                                                  v

Table of Contents                                                                  vi CHAPTER ONE

1.1          Background of the study                                             1

1.2          Statement of the problem                                            4

1.3          Purpose/Objectives of the study      ,                          5

1.4          Research Questions                                                         5

1.5                       Research hypothesis                                                    5

1.6          Significance of the study                                             6

1.7                     Scope/Delimitations of the study                               .        6

1.8         Limitation of the study         6

1.9         Definition of terms      7 CHAPTER TWO

LITERATURE REVIEW                        ^

2.0          Introduction                                                                  8

2.1          Types of inflation                                                         -9

2.1.2  Cost push inflation                                                      .9

2.2     Monetary policies instruments                                   10

2.2.3  Effectives on monetary policy                                   13

2.3.1  Easy monetary policy  .                                               13

2.3.2  Securities                                                                      13

2.3.3  Lower the reserve ratio                                                14

2.3.4  Lower the discount rate                                               14 2.4.2  Raise the discount rate                                                         16

2.5          Evolution of the monetary policy Framework in Nigeria 16

2.6          Theoretical framework model specification              18

2.6         Redistribution effects of inflation                             19

2.7         Anticipation                                                                  21

2.8          Who is hurt by inflation?                                             22

2.8.1  Fixed income receivers                                                 22

2.8.2  Savers                                                                              22

2.8.3  Creditors                                                                        23 CHAPTER THREE

RESEARCH DESIGN

3.0         Introduction                                                                  26

3.1          Research design                                                                26

3.2          Population of the study                                                26

3.3          Sample / Sample Techniques                                       27

3.4          Method of data collections                                          27

3.5          Data Analysis Techniques                                            27 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0          introduction                                                                   29

4.1          Data presentation         .")

4.2          Test of hypothesis        37

4.2.1  The Chi-Square   .                                                         37

4.2.2Decision Rule                                                                39 CHAPTER FIVE

SUMMARY CONCLUSION AND RECOMMENDATION

5.0          Introduction                                                                  42

5.1          Summary                                                                       42

5.2          Conclusion                                                                    43

5.3          Recommendation                                                          43 Bibliography                                                                                    45 References                                                                                        46 Appendix A                                                                                     47

CHAPTER ONE

1.1   BACKGROUND OF THE STUDY

One of the most important aspects of macro economics is monetary policy which is being used as a tool to determine aggregate and average figures in the economy.

This considers what determines total employment and production consumption total, investment in raising productive capacity, and how much a country imports and exports.

It also asks what causes boom and slumps in the short run, and determines the long term growth rate of the economy in the general level of prices and the rate of inflation (Nwachukwu 1998; 12) macro economy considers how these matters can and should be influenced by government through monetary and fiscal policies.

The entire behavior of the economy is studied. Beside, macro economies try to solve the problem of supply issues which result due to excess demand of product by consumers.

However, monetary policy deals directly with control of excess money supply in the economy.

Put differently, monetary policy refers to a combination of measures designed to regulate the value, supply, and cost of money in an economy, in consonance with the expected level of activity.

For most economics like Nigeria, the objectives of monetary policy include price stability, maintenance of balance of payment, equilibrium, promotion of employment and output growth and sustainable development.

These objectives are necessary for the attainment of internal and external balance and promotion of long run economic growth (Bright 2000:10).

Nnanna D.O 2001 rightly puts it that the success of monetary policy depends on the operating economic development.

.