Effects of Monetary Policy Shocks on the Nigerian Economy
Research Article
Keywords:
GDP, Monetary Policy Shocks, Money Supply, Nigeria, SVAR Jel Classification: E52, E61 1.Abstract
This study analyses the effects of monetary policy shocks on the economy of Nigeria during the period 1980:Q1-2018:Q4, using the Structural Vector Autoregression (SVAR) technique. Findings from the study reveals that monetary policy innovations carried on the quantity based nominal anchor, M2, is the most significant source of variation in output and prices with a very fast speed of adjustment while other policy variables were insignificant. The study therefore, recommends emphasis on the manipulation of the quantity-based nominal anchor (M2) for managing the economy.
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