IDEAS home Printed from https://ideas.repec.org/a/ate/journl/ajbev6i3-4.html
   My bibliography  Save this article

Managing the Inflation Problem in Nigeria using the Fisco-Monetary Approach

Author

Listed:
  • Michael Segun Ogunmuyiwa

Abstract

This study examined empirically the impact of monetary and fiscal policy management on the problem of inflation in Nigeria. Monthly data spanning from January 2010 to October 2016 on inflation rate, interest rate, exchange rate, narrow money, broad money, government capital expenditure and government recurrent expenditure were obtained from Central Bank of Nigeria (CBN) statistical bulletin and fitted into the regression model. Autoregressive Distributed Lag (ARDL) was employed after ascertaining the stationarity properties of the series through the Augmented Dickey-Fuller (ADF) test. The results showed that broad money supply (M2) and Capital Expenditure (CE) were significant and are positively related (short and long run) to inflation in Nigeria. Exchange rate was significant and positively related to inflation in the long run. The study also revealed that Nigerian inflationary situation is driven by monetary and fiscal policies in the long run. Narrow money has no significant impact on inflation problem both in the short and long run in Nigeria. The study concluded that monetary and fiscal policies have positive impact on inflation in Nigeria and recommended that monetary and fiscal policies should be harnessed, coordinated and sustained with the help of Central Bank of Nigeria in order to combat the problem of inflation in Nigeria. (JEL E62, E51, E31)

Suggested Citation

  • Michael Segun Ogunmuyiwa, 2020. "Managing the Inflation Problem in Nigeria using the Fisco-Monetary Approach," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 6(3), pages 239-252, April.
    • Handle: RePEc:ate:journl:ajbev6i3-4
    DOI: 10.30958/ajbe.6-3-4
    as

    Download full text from publisher

    File URL: https://www.athensjournals.gr/business/2020-6-3-4-Ogunmuyiwa.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.30958/ajbe.6-3-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Auto-regression; Fiscal Policy; Inflation; Management; Monetary Policy;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ate:journl:ajbev6i3-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Afrodete Papanikou (email available below). General contact details of provider: https://www.athensjournals.gr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.