Monetary and Fiscal Policy Essay examples - 1403 Words.
THE IMPACT OF FISCAL POLICY ON THE NIGERIA ECONOMY. CHAPTER ONE. 1.0INTRODUCTION. This investigates the three elements of fiscal policy (1) government spending, taxation and the other source of revenue which finance public spending and the resulting budget deficit or surplus which occurs wherever government expenditure does not exactly equal revenue.
The goal of the Nigerian fiscal policy is best achieved via stable instruments, like government expenditure and interest rate. Over the years, introduction of the policy have not positively affected the interest rate at all, as it still remains high, putting off investors who may need to borrow money for business. The seeming unchanged economic situation has made many Nigerians to question the.
Monetary policy is the process by which monetary authority of a country controls the money supply, interest rates, lending rates and other monetary rates in order to ensure price stability, contribute to economic growth, lower employment, maintain predictable exchange rates and ensure general trust in the currency. Monetary policy can either be expansionary or contractionary. An expansionary.
This thesis consists of three chapters on monetary and fiscal policy. The first chapter explores the importance of redistribution in explaining why monetary policy has aggregate effects on household consumption. I argue that traditional representative agent models focusing on substitution effects ignore a key component of the monetary policy transmission mechanism, which exists because those.
Fiscal policy is the means by which a government adjusts its level of spending to monitor and influence a nation’s econ-omy. It is used along with the monetary policy, which the central bank uses to influence money supply in a nation. These two policies are used to achieve macroeconomic goals in a nation. These goals include price stability, full employ-ment, reduction of poverty levels.
Hi3: Central Bank of Nigeria’s monetary and credit Policy guidelines and money supply do have impact on the level of outputs. 1.5 SIGNIFICANCE OF THE STUDY However, this research work will assist the economy to derive possible solution to the research problem e.g. control of inflation using monetary policy measures as adopted by the monetary authorities of the Central Bank.
Monetary policy is set by the Bank’s Monetary Policy Committee (MPC), which conducts monetary policy within a flexible inflation-targeting framework. This allows for inflation to be out of the target range as a result of first-round effects of a supply shock and for the Bank to determine the appropriate time horizon for restoring inflation to within the target range.