 |
Objectives and Targets of Monetary Policy in Nigeria |
In Nigeria, the major objectives of policy are the attainment of price stability and sustainable economic growth.
Associated objectives are those full employment and stable long-term interest rates and real exchange rates. In pursuing these objectives, the CBN recognises the existence of conflicts among objectives necessitating at some point some sort of trade-offs.
The targets of monetary policy are in the case of the CBN are the operational target, the intermediate target and the ultimate targets. The Bank manipulates the operating target (reserve money) over which it has substantial direct control to influence the intermediate target (broad money supply, M2) which in turn impacts on the ultimately or final objective of monetary policy, i.e., inflation and output.
The broad money supply (M2) comprises narrow money (M1) and quasi money while the operating targets, reserve money is made up of currency in circulation and bank deposits with the central bank.
Enjoy this article? Feel free to share your comment, idea or opinion in the comment section
Related Articles
|
Nigeria Introduces Levy on Wheat GrainReport Highlights: Effective July 20, 2012, the Government of Nigeria (GON) introduced a 15-percent levy on wheat grain imports resulting in an increase of the effective duty from 5 percent to 20 percent. The GON also introduced a 65-percent levy on wheat flour imports to increase the effective duty [Read more]
|
Posted: 14 years ago |
|
|
What is the Balance Sheet Channel of Monetary Policy Transmission?The purpose of monetary policy is to influence the tempo of economic activities in the country. The manner in which this policy affects real economic aggregates such as inflation, output, interest and exchange rates and employment is referred to as transmission mechanism. In theory, monetary policy [Read more]
|
Posted: 14 years ago |
|
|
Presentation Revolution - Changing the way the world does presentations
I’m dissatisfied. Even more so… I am disturbed, and you should be as well. Today we live in a business culture that abuses the art and science of public speaking everyday. We power up our PCs (Macs, if we’re lucky) and present poorly prepared and hideously designed presentation [Read more]
|
Posted: 16 years ago |
Featured Video
Searching for Management Training Courses? Local or International?