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, NigeriaSynopsis
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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Published
July 4, 2023
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