ENHANCING THE EFFECTIVENESS OF MONETARY POLICY IN COMBATING INFLATIONARY PRESSURES: PROBLEMS, PROSPECTS AND REMEDIES
ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW,
PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE
COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953,
08168759420
ENHANCING THE
EFFECTIVENESS OF MONETARY POLICY IN COMBATING INFLATIONARY PRESSURES: PROBLEMS,
PROSPECTS AND REMEDIES
ABSTRACT
This research work is an attempt to
examine the effect of Central of Bank of Nigeria in performance monetary policy
of bank. The essay work provides a background to the origin and development of
monetary policy in fighting inflation and highlighted the major functions and
activities performed by the Central Bank of Nigeria in order to achieve their
main objectives. It also discusses the objectives, instrument and problems of
monetary policy.
TABLE OF CONTENT
Title page - - - - - - - - - - i
Declaration
- - - - - - - - - - ii
Approval
page - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgment
- - - - - - - - - v
Abstract - - - - - - - - - - vii
Table of
contents - - - - - - - - - viii
CHAPTER
ONE
1.1 Background of the study - - - - - - - 1
1.2 Statement of Problems - - - - - - - 3
1.3 Objectives of the study - - - - - - - 4
1.4 Research Question- - - - - - - - 4
1.5 Significance of the study - - - - - - - 5
1.6 Scope and limitation of the study - - - - - 6
1.7 Definition of terms - - - - - - - - 6
CHAPTER
TWO
2.0 Literature Review - - - - - - - - 9
2.1 Introduction - - - - - - - - 9
2.2 Definition of Concepts - - - - - - - 10
2.3 Definition of Monetary Policy - - - - - 13
2.4 Instruments of Monetary Policy - - - - - - 15
2.5 Types of Monetary Policy - - - - - - 19
2.6 Objectives of Monetary Policy - - - - - - 22
2.7 Monetary Functions of the Central Bank of
Nigeria - - 23
2.8 Weakness of Monetary Policy in Combating
Inflation - - 26
CHAPTER
THREE
3.0 Introduction - - - - - - - - 29
3.1 Area of Study - - - - - - - - 29
3.2 Research Design - - - - - - - - 29
3.3 Population of Study - - - - - - - 30
3.4 Sampling Technique - - - - - - - 30
3.5 Data Collection and Instrument - - - - - - 30
3.6 Administration of the Instrument - - - - - 31
3.7 Method of Data Analysis - - - - - - - 31
CHAPTER
FOUR
4.0 Data Presentation, Analysis and
Interpretation - - - 32
4.1 Introduction - - - - - - - - - 32
4.2 Data Presentation - - - - - - - - 32
4.3 Summary of Findings - - - - - - - 36
CHAPTER
FIVE
5.0 Introduction - - - - - - - - - 38
5.1 Summary of the study - - - - - - - 38
5.2 Conclusion - - - - - - - - - 39
5.3 Recommendation - - - - - - - - 39
Bibliography - - - - - - - - 41
Appendices
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Monetary policy entails the
government policies aimed at changing the quantity of money or credit
condition. In every economy, after fiscal policy, the next most powerful
macro-economic stabilization is monetary policy.
In fact Monetary and fiscal policies
are expected to work together as complements to achieve one goals of a sound
macro economic management that include amongst other domestic price stability
external sector viability as well as enhance efficiency in resource allocation,
distribution and utilization.
Monetary policy is therefore measure
designed to regulate and control the volume, cost, availability and direction
of money and credit in an economy to
achieve some specifically micro-economic objectives. It is one policy that
seeks to influence economic activities using the tools available to the central
bank i.e. money supply (MS) interest rates and exchange rates. It can also mean
the deliberate attempt by the authorities to either control the supply of money
or to control interest rates or to ration the amount of credit granted by
banks.
The history of economic growth shows that,
economic transformation started in England in the Late eighteen century and
gradually spread to other parts of Europe and North America. Economic
transformations did not get to other parts of thee world until in the 1950s
when Japan transformed to become one of world’s major industrial giants. This
economic transformation has spread far and wide in the recent times but its
spread is highly limited in Africa. It is only South Africa that has
experienced it so far. This is clearly demonstrated by the World Bank report of
(2001) which states that out of the 46 poorest countries in the World, 35 of
them are in Africa.
Nigeria with it’s vast resources of
both human and material nature is not left out of the club of poverty stricken
countries. This poverty is illustrated by the recent World bank report (2005),
which says that more than 70% of Nigerians are living below poverty line.
It is against this background that
this study is being undertaken. This poverty can be tackled using both fiscal
and monetary policies to help solve this problem and growing poverty. So far,
removing the country from poverty trap that seems almost impossible to be
solved using variety of macro-economic policy measures.
1.2
STATEMENT OF THE PROBLEM
The problem of inflation in Nigeria
has been confronted in variety of ways by the government of the country using
different macro-economic policies. The government introduced several measures
e.g. National Development Structural adjustment Programmes (SAPs). Guided
Deregulation etc. to combat this problem. Despite all these measures, we still
experience inflation in the country.
The question now is, why we still
experience inflationary conditions after all these variety of measures adopted
by the government to control it or reduce it intensity?
Moreover, the issue of monetary
policy has its objectives one of which is tackling the problem of
inflation. The Central Bank applied all
measures to control it still every effort seem to be fruitless.
The nest question is why have all
these measures failed in combating the problem of inflation?
1.3
OBJECTIVE
To highlight the relevance of
monetary policy in combating inflation.
Try to explain the various types of
monetary policy that can be used to combat inflation and other macro-economic
problems.
Identify and discuss the monetary
policy problems with particular reference to Nigeria.
To explain the various instruments of
monetary policy that can be used to combat inflation especially in less
developed Countries (LDCS) such as Nigeria.
1.4
RESEARCH QUESTION
The following hypothesis have been
put forward to guide research work
1. Monetary Policy is not an effective
tool of macro-economic stabilization of an economy.
2. Money supply has no impact on the
Level of economic activities and growth.
3. Central Bank of Nigeria’s monetary
and credit Policy guidelines and money supply do not 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.
Furthermore, the research ex-rays the
various types of monetary policy measures, which can be used to combat the
problem of unstable economy and prices, and as a result will be a kind of
research materials to those in various fields may be of immense use of future
researchers.
Government will benefit immensely
from this research works as the topic is very relevant in the field of
macro-economic policy formulation.
1.6
SCOPE OF THE STUDY
This project covers the role of
monetary policy and it’s controlling inflation in the Nigeria economy. A
general overview of monetary policy and inflation in the Nigerian economy is
the foundation upon which the project is developed.
1.7 LIMITATIONS OF THE STUDY
However, study of this nature is
known to be subject to a number of problems or constrains, which are peculiar
to the Nigerian society such as financial constraints. This research work was
not an exception the problem of visiting the Central Bank of Nigerian and some
other places for data collection involved spending a lot of money or transport
expenses.
Hence, the predicament of the overage
students can therefore be imagined.
Furthermore, the issue of office
protocols time limit, secrecy inadequate research materials also were some
setbacks to the researchers in carrying out this research.
1.8 DEFINITION OF TERMS
1.
Expansionary Monetary Policy: Is a monetary policy that seeks to
increase the size and volume of money supply, it can be increase by buy bonds
in exchange for hard currency payment to adds that amount of currency to the
money supply.
2.
Contractionary Monetary Policy: This is the policy that can be
implemented by reducing the size and volume of monetary base by the way of sell
bonds in exchange for hard currency, by so doing it removes that amount of
currency from the economy.
3.
Reserve Requirement: Commercial banks are required to
maintain certain reserve requirement in order to control their liquidity and
influence their credit operations, these are usually expressed as a percentage
of customers deposits.
4.
Discount Rate: The discount rate is the rate of
interest the monetary authorities charge the commercial banks on loans extended
to them. If the Central Bank wishes to increased liquidity and investment, it
reduces the discount rate, and on the other hand if the Central Bank wishes to
reduce liquidity in economy, it raises the discount rate.
5.
Liquidity Ration: The Central Bank imposes upon the
bank a minimum liquidity ratio, being vary to the needs of the situation. It is
designed to enhance the ability of bank to meet cash withdrawals in them by
their customers. Such liquidity ratio stands for the proportion of specified
assets.
6.
Open Market Operation (OMO): This involves the Central Bank
Discretionary power to sell or purchase securities in the financial market in
order to influence the volume of credit and interest rate which consequently
affect money supply. The securities include treasury certificates, treasury bill
and development stock
7.
Moral Suasion: Is the act of public pronouncements
or outright appeal on the apart of monetary authorities to the banks requesting
them to operate in a particular direction for the realization of specified
government objectives.
8.
Economic Growth: This is a process whereby the real
per-capital income of a country increases over a long period of time. Economic
growth is measured by the increase in the amount of goods services produced
deposits are savings and currents account of deposits in a commercial bank.
9.
Money Supply: Is a currency with the public and
demand deposits with commercial banks. Demand deposits are savings and current
account of depositors in a commercial bank.
10.
Economic Life Cycle: This refers to a view of product
design, each stages of the product’s life is assessed in terms of cost, at each
stage of this life cycle choice have to be made.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account
below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are
good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter
one” of all our project topics and materials in order to convince you that we
have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank
Account contains all information about the owner of this website. For your own
security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment,
because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website
WORD-TO-WORD. These materials are to assist, direct you during your
project. Study the materials carefully and use the information in them to
develop your own new copy. Copying these materials word-to-word is CHEATING/
ILLEGAL because it affects Educational standard, and we will not be held
responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy
word-to-word.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment