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A central bank can use its balance sheet to alter the allocation of credit in the economy. To investigate the impact of monetary policy on economic growth in Nigeria. Unanticipated shocks can disrupt activity, necessitating the shift of capital and labor out of a declining sector. Email: 1432983285@qq.com . It is found that monetary policy has significant impact on the Nigeria’s economic growth within the period under study; 1980-2008. Monetary policy uses a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other … indicates the monetary policy has a positive impact on economic growth. The results further showed exchange rate and inflation as proxies for monetary policy have inverse impact on economic growth. In an economic crunch, only flexible monetary and fiscal policies can support the economic system as policies can easily be adjusted to fit what is best. 2016) also illustrated that money supply and exchange rate werepositive However, the short-run results only reveal no impact of monetary policy on economic growth only when the interest rate is used as a proxy for monetary policy. Using the Cleveland Fed’s model, for example, yields an estimate of 1.9 percent. The resulting money creation by the central bank and the private banking system in turn drives price level determination. To examine the various monetary policy instruments used in Nigeria. AN EMPIRICAL ANALYSIS OF THE IMPACT OF MONETARY POLICY ON ECONOMIC DEVELOPMENT IN NIGERIA (1985–2011) CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY One of the major issues which have occupied the mind of government for years is the impact of monetary policy as a tool for price … An expansionary monetary policy reduces the cost of borrowing. There is a consensus among economists that growth in average real income depends critically on the rate of technological change. The subject I’d like to discuss — the title of my talk — is a hardy perennial, but it is particularly relevant in today’s economic environment. Learn more about resources, museum visits & educational programs  >. Monetary stability is critical for economic growth. As a result, I believe it is appropriate for such actions to be taken only by elected branches of government, not by the central bank.4. 1-17. (2) H0 - That the monetary policy instruments do not impact significantly on … Monetary policy’s effect on real economic activity is limited and temporary, although poorly executed monetary policy can persistently impede economic growth. In fact, by comparing measures of expected inflation over five- and 10-year horizons, one can extract an estimate of the inflation rate investors expect to prevail between five and 10 years from now. The dramatic increase in the Fed’s monetary liabilities after 2008 — from just under $1 trillion to over $4 trillion now — caused concern that surging inflation was imminent. The labor market was simply unable to rapidly absorb the large number of workers who lost jobs in the housing sector. 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