TABLE OF CONTENTS
Title Page '
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
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
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..