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Monetary and Fiscal Policy Coordination in Nigeria: A Set Theoretic Approach

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  • Victor Ugbem Oboh

Abstract

In this article, we use the Set Theoretic Approach (STA) to determine the extent of coordination between monetary and fiscal policies in Nigeria from 1981 to 2015. Our main findings generally indicate a weak level of policy coordination estimated to be 17%. A further disaggregation of the results showed that the highest level of coordination of 36.4% occurred during the period of low growth and high inflation. However, there was no evidence of coordination during periods of high GDP growth and inflation. These findings point to the obvious need for fiscal and monetary authorities to strengthen policy coordination towards enhanced macroeconomic stability.

Suggested Citation

  • Victor Ugbem Oboh, 2017. "Monetary and Fiscal Policy Coordination in Nigeria: A Set Theoretic Approach," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(1), pages 48-58, March.
    • Handle: RePEc:khe:scajes:v:3:y:2017:i:1:p:48-58
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    References listed on IDEAS

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    More about this item

    Keywords

    Monetary policy; fiscal policy; coordination; STA; Nigeria;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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