ABSTRACT
This study sets out to examine managing monetary policy in an
environment chocked up with huge fiscal deficits and public debt, high
inflation rate etc, (which gives rise to fiscal dominance), in Nigerian
setting during the period 1980 to 2004.
To accomplish this, statistical hypotheses were
stated empirically. In chapter two, of the study, the review of various
monetary policies in Nigeria was highlighted. Also there were emphasis
on the fiscal policy and arguments on which of the two policies
actually dominates.
The theoretical frame work was formulated and presented in chapter three.
While in the forth chapter, the model developed in chapter three
was specified and estimated by the ordinary least square (OLS)
technique and the Cochrane-Orcutt as a corrective measure for
auto-correlation, using the annual data for the period under study.
The fifth chapter concludes with the findings of the study which are;
Firstly, the results of the model showed that the specified
variables which includes; banking system holdings of public domestic
debt outstanding, domestic public debt, total government expenditure
and inflation rate were all significant in explaining the systematic
variation in the level of money supply with the exception of the
domestic public debt.
Secondly after the application of the corrective
mechanism i.e. the Cochrane-orcutt measure, all variables were
statistically significant except that of total government expenditure.
And all the variables conformed to Apriori specification.
The study there fore points to the need for a
prudent fiscal policy and monetary authorities should place more
emphasis on monetary actions than on fiscal action in their drive
towards stabilization of the economy.
TABLE OF CONTENT
Title page
Certification …………………………………………………………i
Dedication …………………………………………………………ii
Acknowledgement …………………………………………………iii
Abstract ……………………………………………………………iv - v
Tables of content
List of figures
CHAPTER ONE
Introduction
- Background to the study …………………………1 – 3
- Statement of problem ……………………………4 –5
- Objective of the study ……………………………6
- Hypotheses …………………………………………6
- Scope of the study …………………………………6 - 7
- Types of data ………………………………………7
- Sources of data ……………………………………7
- Justification of study ………………………………7 – 8
- Definition of terms …………………………………8 - 9
CHAPTER TWO
REVIEW OF LITERATURE
2.1 Introduction ………………………………………………………. 10 -12
2.2 Role of the Autonomy of the Central Bank ………………………. 12 -14
2.3 Appraisal of monetary policy management ………………………. 14 – 17
Since the 1970’s
2.4 Fiscal dominance or Monetary management ……………………… 17 -20
2.5 Financing fiscal Deficits …………………………………………... 20 -21
2.6 Monetary and Fiscal policy conflicts ……………………………… 21 -22
2.7 Monetary policy and Fiscal behavior in Nigeria ………………….. 22 -23
CHAPTER 3
3.1 Theoretical Framework …………………………………………… 23 -26
3.2 Methodology ……………………………………………………… 26
3.3 Model Specification ………………………………………………. 26 – 27
3.4 Method of Data Analysis …………………………………………. 28
3.5 Data Requirements ……………………………………………….. 28
CHAPTER 4
4.0 Presentation and Interpretation of results ………………………... 29
4.1 Results ……………………………………………………………. 30 -31
4.2 Interpretation of results …………………………………………... 31 -34
CHAPTER FIVE
5.1 Summary of findings ……………………………………………..
5.2 Recommendations and conclusion ……………………………….
Reference