ABSTRACT
This research work focus on the appraisal of Macroeconomic Policy on Inflation in Nigerian Economy, also to determine how it enhances the growth of Nigerian Economy.
The aim of this research work is to look into challenges and numbers of hypothesis were drawn. Information necessary to address the test of hypothesis was gathered through secondary data, source from Central Bank of Nigeria (CBN).
Economic analysis was used to formulate the three (3) models that were stated in this research work. Multiple regressions were also used to test the appraisal of Macroeconomic Policy on Inflation in Nigerian Economy. The findings of this research show that macro-economic policy as a tool for Economic Policy and Growth as a Positive Effect on the Growth in Nigeria. Inconclusion, government should ensure that operational problems are tackled prior to sale so that there would not be any barrier hindering the high degree of efficiency that is associated with the stability of the Nigerian economy.
CHAPTER ONE
1.1 INTRODUCTION
Over the years, Nigeria has made conscious and determined efforts to attain a high level of social and economic transformation of the economy in order to attain the development goals and including monetary policy, fiscal, policy, exchange control measures and income and price control. The measures adopted were changed from time to time to reflect the changing economic environment and circumstances.
This work focuses on two of the policies adopted (monetary and fiscal policy) and examines their uses for economic growth and stability in Nigeria. Since the main burden of aggregate economic policy must fall on either monetary policy and fiscal policy or a combination of both.
The question arises as to whether to clear cut distinction can be made between policies which are termed "MONETARY" are those which are to be called “FISCAL”. The truth is that considerable ambiguity about these terms exist and this often leads to useless debate and confusion.
However, monetary policy can be as a measure which deals with the discretionary control of money supply by the monetary authorities with a view of achieving stated economic' objectives. In other words, it employs the use of variation in the money supply to achieve economic objectives.
Fiscal policy on the other hand may be defined as the policy pursued by a government to influenced economics activities in economy by changing the size and content of taxation, expenditure and public debt with a view to achieving given objective. Although, there two policies are independent tools of 1conomics stabilization, they are often combined by most countries for a greater effect on the economy.
Monetary and Fiscal policies as adopted in Nigeria have four broad objectives. The objectives include:
· Maintenance of relative stability in domestic price
· Attainment of a high and sustainable rate of economic development
· Maintenance of balance of payment equilibrium growth and stability are so closely related that the economic policy of the government should include both of them.
Economic growth may be judges from the growth it total output of the economy as measured by annual increases in net national rod, ct in constant price. Such a measure tells us how much bigger the total economy is becoming over a period of time, but it tells nothing about changes in the standard of living of the people in the economy.
The more significant measures in the growth in real net national product divided by the number of people in the population. There are many targets of economic growth and development. They includes
· Income distribution Gross national product Sectoral development (such as agriculture industries etc)
· The pressure to attain economic stability or our economic is so strong that measures to promote federal government fidget.
· To achieve the maximum practicable rate of growth, this is necessary to have stability. This does not mean a perfectly smooth rate of growth, but one that is not interrupted byI recessions and depression.
· Stabilization policies that are usually released annually concerns attempts to stabilize the level of national income by ensuring that serious inflationary and deflationary gapsdo not persist so that something close to full employment without rapid inflation can be achieved.
The government uses the instruments of monetary and fiscal policies to influence economic growth and development. The instrument of monetary policy available to the Nigeria monetary authorities include:
· Rediscount rate
· Interest rate structure
· Reserve requirement
· Direct credit control
· Exchange rate and
.