EFFECT OF MONETARY POLICY ON THE RATE OF UNEMPLOYMENT IN NIGERIAN ECONOMY(1986-2018)
Keywords:
Cash Reserve Ratio, Exchange Rate, Liquidity Ratio, Monetary Policy, Monetary Policy Rate, Money Supply, UnemploymentAbstract
This study examines the effect of monetary policy instruments on unemployment in Nigeria (1986-2018) using secondary data from Statistical bulletin of Central Bank of Nigeria(2020)Specific objectives of the study is to find out the effect of monetary policy rate, broad money supply, exchange rate, liquidity ratio and cash reserve ratio on unemployment. The study adopted an Autoregressive Distributed Lag technique and also conducted the unit root and co-integration test. The study found that cash reserve ratio and monetary policy rate had positive and insignificant effect on the employment rate in Nigeria, broad money supply had positive and significant effect on the employment rate in Nigeria, exchange rate and liquidity ratio had negative and significant effect on the employment rate in Nigeria. The study concludes that monetary policy has significant effect on the rate of unemployment. Based on the findings made in the course of this study, the study recommends that the Monetary policies should be used to create a favourable investment climate by facilitating the emerging of market based interest rate and exchange rate administration that will attract both domestic and foreign investments and create jobs, Government should build an effective and sustained low interest rate intervention fund to support the real sector, especially small and medium enterprises. Hence, it is recommended that policy makers in Nigeria should focus invariably on the adjustment of interest rate when considering unemployment in its monetary policy decisions.
Downloads
Published
Issue
Section
License
Copyright (c) 2021 JOGAArticles submitted to JOGA should not have been published or are currently under review by another Journal. Kindly see the guide for the preparation of the manuscript for details. Successful submission of articles by author(s) for publication clearly implies that the work is not an infringement of any existing copyright warranty as JOGA reserves the right to be indemnified by the author(s) where any breach of such warranty is proven. For ease of dissemination and to ensure proper policing of use, papers and contributions become the legal copyright of JOGA once published unless otherwise agreed.
Permission clearance should be obtained by the author(s) where applicable for the use of any content of interest not originally created by them. This must be done before the submission of the article to JOGA. Failure to do so may lead to a lengthy delay in publication, as JOGA is unable to publish any article which has permissions pending. Thus, the rights JOGA requires are:
- Non-exclusive right to reproduce the material in the article or book chapters.
- Print and electronic rights.
- To use the material for the life of the work (for instance, there should be no time restrictions on the re-use of material).
Where tables, figures or excerpts of more than 250 words are reproduced from another source, it is expected that:
- Author(s) should obtain the necessary written permission in advance from any third-party owner of the copyright for the use in print and electronic formats of any of their text, illustrations, graphics, or other material in their manuscript. Permission must also be cleared for any minor adaptations of any work not originally created by the author(s). The author (s) should not assume that any content freely available on the web is free to use.
- Where the author adapts a significant number of any material, the author(s) must inform the copyright holder of the original work.
- Author obtains any proof of consent statements
- The author must acknowledge figure(s) and content adopted or adapted in work utilizing source(s) and further capture them in the list of references.
