Monetary Policy In Nigeria The Role In Promoting Economic Stability In Nigeria. Monetary Policy In Nigeria The Role In Promoting Economic Stability In Nigeria. Rapid and sustainable economic growth remains the quest of every society. Nigeria experienced serious economic problems from late 1. The countrys balance of payments came under severe pressure and was in persistent deficit during the period. Eaxus Controller Drivers. To place an order for the Complete Project Material, pay N5,0. GTBank Guaranty Trust BankAccount Name Chudi Oji Chukwuka. Account No 0. 04. Population Policy Of Nigeria Pdf' title='Population Policy Of Nigeria Pdf' />Then text the name of the Project topic, email address and your names to 0. The government current expenditure expanded without appreciable increase in revenue leading to widening fiscal deficit, which were largely financed with bank credit with averse effects on the general price level. The responsibility for monetary policy and implementation in Nigeria rest with the Central Bank of Nigeria CBN. Monetary policy in Nigeria has been conducted under wide ranging economic environments. The monetary and financial policies pursued in recent years have been designed to support the attainment of basic objective of the economic reform programme adopted in July 1. This represents a strategic land mark in the history of economic stabilization as it marked the end of highly regulated regime and opened up a new chapter that reflected government efforts at deregulating the economy with increased emphasis on market forces. The instruments available to the CBN during this period for the achievements of objective of monetary policy include both the direct and indirect instruments, which have been used in various degrees and at different stages of the countrys experiments with monetary policy. CssAndDesign_268245443.jpg' alt='Population Policy Of Nigeria Pdf' title='Population Policy Of Nigeria Pdf' />The responsibility of any government in a country in its monetary policy consists of actions by the CBN with its monetary management and to ensure a stable internal and external value for the national currency. In this regard, it is important that the supply of money and credit to an economy is adequate to support desirable and sustainable growth without causing inflationary pressures and undue instability in the exchange rate, the ultimate objective being the improvement in the welfare of the citizenry. The term money for the purpose of this study is a means of payment for goods and services. The dynamic functions of money have some international dimensions, as there is the technical device for financing transfer of capital. The value of money depends on the confidence people have on it, that they exchange it for sale of goods and services whenever they want to do so. To keep the value of money stable, its quality has to be controlled for money to perform its useful roles of store of value, standard for deferred payments, units of accounts and medium of exchange efficiently and effectively. It requires a skillful and careful management in order to ensure relative price stability, so as to motivate the financial sector and promote economic development in a changing world of complex economic and finance relations. Monetary policy is a major economic stabilization weapon, which involves measures designed to regulate and control the volume, cost and direction of money and credits in the economy to achieve objectives, which can change from time depending on the economic fortune of a particular country. Monetary policy formulation and its implementation has raised a very difficult task as well as practical problem in Nigerian economy. Generally, the objectives of monetary policy was designed to deal with the following i. High rate of employmentii. Population Policy Of Nigeria Pdf' title='Population Policy Of Nigeria Pdf' />Monetary Policy In Nigeria The Role In Promoting Economic Stability In Nigeria. Monetary Policy In Nigeria The Role In Promoting Economic Stability In Nigeria. The Initiative for Policy Dialogue helps developing countries explore economic policy alternatives and enable civic participation in economic policymaking. Nigeria Geographical and historical treatment of Nigeria, including maps and statistics as well as a survey of its people, economy, and government. Maintenance of relative price stabilityiii. Control of inflationiv. Iv sustainable rate of economic growth. Maintenances of healthy balance of payments position for the country in order to uphold the external value of the national currency. The enhancement of rapid economic development. Maintenance of relative stability of domestic prices, in practice one finds more often than not, in objectives conflict intractably. Hence, monetary management involves difficult trade offs among conflicting objectives in order to maximize the overall benefits to the society. In the process of monetary management policy formulations, it is of utmost importance to specify the focus of policy otherwise, it will be impossible to evaluate performance. For example the objective of price stability and in the short run, which may not be sustainable in the long run. Monetary expansion may raise output of goods and services and level of employment and consequently lead to price stability in the long run. Standard tools have been devised to facilitate monetary management, but the major constraints it have is that, the tools are not universally applicable, there is a strong need for selection depending on each countrys problems or circumstances and stages of development and conditions suitable to the use of the instruments selected. The ability of putting the economy in permanent state of excess demand as long as aggregate supply of goods and services do not move as rapidly as the aggregate demand due to supply inelasticities, irrelevant rules and related rigidities in the structural problems in developing countries include high dependency on imported goods, differences in productivity among sectors and the general rigidities in prices and wages. Structuralism came into conclusion in order to promote economic growth and development. That is to say that with out some measure of inflation, growth and development were unlikely to occur and be sustained. In Nigeria, the CBN wielded the primary responsibilities of initiating, implanting, articulating and appraising a monetary policy. The result level of macro economic instability in Nigeria is as a result of the sustained pursuit of expansionary fiscal and monetary output. There have been some record of success and failure in the conduct of monetary policies. The role of these policies are shown by empirical result of their performances. A good examination of monetary result will be attain if independence is being granted to the people concern in the implementation of such policies. In light of the prevailing economic situation, the government must decide the priority attached to any of these policies, so that one can categorically come to conclusion that all hope is not lost for Nigeria economy to recover from recession. STATEMENT OF RESEARCH PROBLEMThe goals of every economy remains the same irrespective of the state of the economy developing or developed that is price stability and rapid and sustainable economic growth rate etc. There is no economy that is totally protected from economic problems like high unemployment rate, balance of payment disequilibrium, inflation unsustainable growth rate, increase in printing of fake currency etc. The desire of economists to reduce the occurrence of these ills has led them to harness resources and efforts in developing appropriate policies to tackle these problems. Monetary policy is one of such policies used by government to achieve laudable macro economic variables in engulfing these macro economic problems.