Call for Papers : Volume 15, Issue 03, March 2024, Open Access; Impact Factor; Peer Reviewed Journal; Fast Publication

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An analysis of the monetary policy transmission mechanism in Nigeria

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This paper examines the analysis of the transmission mechanism of monetary policy in Nigeria. To achieve the broad objective of this paper, the vector auto-regression approach is employed as estimation technique. From the empirical result, it is revealed that an increase in the interest rate tends to be accompanied by a reduction in inflation and an increase in exchange rate but show insignificant impact on the level of production. The study finally suggests that monetary authority in Nigeria should endeavour to undertake structural reforms aiming at addressing the weakness in the financial sector, then effort should also be but in place in ensuring that commercial banks in Nigeria follow central bank of Nigeria directives for financial intermediation in our economy.

Author: 
Ogunsakin Sanya
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