THE EFFECTIVENESS OF MONETARY POLICIES IN THE NIGERIAN ECONOMY – Complete Project Material


THE EFFECTIVENESS OF MONETARY POLICIES IN THE NIGERIAN ECONOMY

CHAPTER ONE

1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY

Some years ago, Nigerian economy was faced with the problems of circulation of money. He major problems that affected the economy were price instability unemployment balance of payment which hindered the economic growth.

As time went on, he government decided to establish a policy which was know as “monetary policy” which will be used to control the economy by monetary authorities to check the volume of money quantity availability cost and direction money and credit in the economy as a hole.

The purpose of the study is listed beneath:

– To find the effect of monetary policy on employment in the Nigerian economy

REASONS FOR THE STUDY

The reasons for the study is to know the effectiveness of monetary policy banking sector of Nigeria and some of the reasons are listed beneath-

1. To know the reason why monetary policy is vital instrument in the banking sector.

2. To know the effectiveness of monetary policy on banking sector in Nigeria.

3. To consolidate banking activities in the economy.

4. To stabilize the availability of monetary in circulation in the Nigerian economy.

SIGNIFICANCE OF THE STUDY

In this course of study throughout the process I have acquired in my study which I have gone through and I have realized that the government and the banks will benefit more form this research work and even those in the department of banking and finance and other financial studies which readers will benefit form it and further looking into it I observed that it will help the global world by acquiring more knowledge through reading my research.

1.2 DEFINITION OF THE TERMS

The terms used in my research will be firstly defined as follows:

EFFECTIVENESS:

According to the oxford dictionary it is the act of producing the result that is wanted intended.

MONETARY POLICY:

According to John Orjih referred to monetary policy “as a deliberate government policy which manipulates the cost of and availability of money and credit as a means of achieving the desired level of prices employment output and other economic objectives.

BANKING: It is the business activities of the bank (s) according to Kalu (2003)”as an association of person (s) authorized by law or incorporated that carry on financial services to the general public.

NIGERIA: This is an association of people with different status that is controlled by the federal government.


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