An econometric study of the relative impact of fiscal and monetary policies on economic stabilization in Nigeria: 1960-1989
Keywords:
Economic stabilization
fiscal policy
monetary policy
econometric analysis
Nigeria
Synopsis
Efforts to bring under control, cyclical fluctuations in economic activity have been largely
elusive in the Nigerian economy. Stagflation has been a persistent
problem in Nigeria since 1960. Fiscal and monètary policies are stabilization policies which are
considered relevant
in the battle against disequilibria in the economy, alternately or as a mix. The focal problem of
this research is to investigate the relative impact of alternative stabilization policies - fiscal
and monetary - on economic nctivity with the view to bringing about economic stabili
zation. Previous empirical studies have investig9ted this subject based on the evaluation of one or
two hypotheses within a time span of about 10 years. These hypotheses
are investigations on the relative magnitude of impact and the predic:tability of the response of
economic activity - gross domestic product - to fiscal and monetary policies.
The present study investigates the subject on the basis
(of three hypotheses which includes a further investigation on the time pattern of the relationship
between economic activity and fiscal and monetary policies - the·speed·and time of_impact. Also
this study is made within a longer historicalntime span 1960-1989.
Amidst three alternative methods of study the s.ingle
equation model is chosen as the operative rnodel used in
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References
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Published
July 4, 2023
Series
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