Impact of Fiscal and Monetary Policy on the Economic Development of Nigeria: Empirical Review
Pillah, Tyodzer Patrick
Pillah, Tyodzer Patrick, Department of Public Administration, Faculty of Management Sciences, Veritas University, Abuja.
Manuscript received on 01 February 2023 | Revised Manuscript received on 13 February 2023 | Manuscript Accepted on 15 May 2023 | Manuscript published on 30 May 2023 | PP: 52-55 | Volume-3 Issue-1, May 2023 | Retrieval Number: 100.1/ijef.F1569029623 | DOI : 10.54105/ijef.F1569.03010523
Open Access | Editorial and Publishing Policies | Cite | Zenodo | Indexing and Abstracting
© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This study seeks to investigate the impact of fiscal and monetary policy on economic growth in Nigeria: Empirical Review from 1991 to 2021. An economy must therefore improve its economic growth and development with the end objective in mind, which is to lower its debt level and maintain price stability. Good political and economic conditions can dictate good government management and monetary authority. Numerous research found that the employment of money supply and tax tools during specific time periods had a negative influence on output, indicating that the tools utilized in the studies reduced the effectiveness and efficiency of the policies. Other analyses came to the conclusion that these measures are not very effective since even though interest rates have dropped significantly between 1991 and 2021, investment and economic growth rates are still increasing slowly. As a result, it’s essential to improve the effectiveness of fiscal and monetary policy by opening up transmission channels including the banking system, financial sector, and capital market. This study suggests, among other things, that in terms of fiscal policy, The government may pursue economic expansion by growing spending (without matching increases in taxes) – such as building more federal roads – which could surge employment, thereby pushing up demand and growth – while the central bank can implement a tight monetary policy by raising interest rates and withdrawing money from circulation.
Keywords: Fiscal Policy, Monetary Policy, Economic Growth
Scope of the Article: Economics