Monetary Policy Variables and Economic Growth in Nigeria
Keywords:, Liquidity Ratio, Interest Rate, Exchange Rate, Inflation, Economic Growth
AbstractThis study aimed to find out the impact of monetary policy variables on economic growth in Nigeria, the specific objectives were to: examine the extent to which a rise in liquidity ratio impacts economic growth in Nigeria, investigate the magnitude by which interest rate contributed to economic growth in Nigeria, and determine if an increase in the exchange rate has a significant impact on economic growth in Nigeria. The methods used in the study were unit root tests and ARDL tests. The empirical result showed liquidity ratio impacted positively on economic growth in the long run in Nigeria; interest rate impacted negatively on the economic growth in Nigeria; whereas exchange rate impacted negatively on economic growth in Nigeria. The study recommends that the Central Bank of Nigeria should ensure that deposit money banks maintained an adequate liquidity ratio that is needed for economic growth in the country. They should maintain a low and stable interest rate that will encourage investment in the country, and CBN should maintain a favorable exchange rate to attract foreign investors to invest in the country.
Proposed Policy for Journals That Offer Open Access
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0).
Authors who publish with Journal of Economics and Business Aseanomics (JEBA) agree to the following terms:
1. For all articles published in Journal of Economics and Business Aseanomics (JEBA), copyright is retained by the authors. Authors permit the publisher to announce the work with conditions. When the manuscript is accepted for publication, the authors agree to the publishing right's automatic transfer to the publisher.
3. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
4. Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
5. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and greater citation of published work (See The Effect of Open Access).