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Uncertainty of Output Gap and Monetary Policy-Making in Nigeria

Author

Listed:
  • Abayomi T. Onanuga

    (Olabisi Onabanjo University)

  • Sheriffdeen A. Tella

    (Olabisi Onabanjo University)

  • Adenike M. Osoba

    (Olabisi Onabanjo University)

Abstract

This paper investigates the effect of output gap uncertainty on monetary policy rate in Nigeria-1991Q1-2014Q4. A major challenge of monetary policy is the attainment of sustainable output level but in setting the optimal monetary policy rate information about output gap and how uncertainty of the gap affects the path of the monetary policy rate is crucial for policy use. Empirical evidence on this phenomenon in Nigeria has been concerned with how monetary policy affects output while evidence on the response of monetary policy to uncertainty of real output is not indepth. Analythical approach in this paper adopts the Generalised Method of Moments econometric technique.

Suggested Citation

  • Abayomi T. Onanuga & Sheriffdeen A. Tella & Adenike M. Osoba, 2016. "Uncertainty of Output Gap and Monetary Policy-Making in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(5), pages 227-237, OCTOBER.
    • Handle: RePEc:dug:actaec:y:2016:i:5:p:227-237
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3426/3604
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    References listed on IDEAS

    as
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