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Full-Text Articles in Social and Behavioral Sciences
Monetary Policy Transmission Mechanism In Nigeria, M. Ajayi
Monetary Policy Transmission Mechanism In Nigeria, M. Ajayi
Economic and Financial Review
This article reviews the monetary policy transmission mechanism in Nigeria and the various challenges of the transmission process. Also, it highlights the need to continuously examine the channels of monetary policy in the economy to enhance policy design and implementation in Nigeria. The paper is divided into five parts. Following the introduction as part I, Part II, discusses conceptual issues of monetary policy transmission mechanism, while Part III gives country experiences. Part IV x-rays monetary policy transmission mechanism in Nigeria and lessons from international experiences while Part V contains the concluding remarks.
The Lending Channel Of Monetary Policy Transmission In Nigeria; Vector Autoregressive (Var) Verification, Mbutor O. Mbutor
The Lending Channel Of Monetary Policy Transmission In Nigeria; Vector Autoregressive (Var) Verification, Mbutor O. Mbutor
Economic and Financial Review
This paper has evaluated the nature of the lending channel of monetary policy transmission mechanism. The major prediction of the approach is that a monetary tightening through increase in the policy interest rate will lead to a decline in the quantity of loans granted by commercial banks. Nigerian data from 1970 to 2003 have been utilized to ascertain the correctness of this hypothesis, using the vector autoregressive methodology. The results show that increases in the Treasury bill rate lead to a contemporaneous rise in the price of loans and a fall (with a lag)in the quantity of loans. Both affirm …