ENHANCING THE EFFECTIVENESS OF MONETARY POLICY IN COMBATING INFLATIONARY PRESSURES: PROBLEMS, PROSPECTS AND REMEDIES
ABSTRACT
This research work is an attempt to examine the elect of Central of Bank of Nigeria in performance monetary policy of bank. The essay work provides a
background to the origin and development of monetary policy in fighting inflation and highlighted the major functions and activities performed by the
Central Bank of Nigeria in order to achieve their main objectives. It also discusses the objectives, instrument and problems of monetary policy.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Monetary policy entails the government policies aimed at changing the quantity of money or credit condition. In every economy, are fiscal policy, the next
most powerful macro-economic stabilization is monetary policy.
In fact Monetary and fiscal policies are expected to work together as complements to achieve one goals of a sound macro economic management that include amongst other domestic price stability external sector viability as well as enhance efficiency in resource allocation, distribution and utilization.
Monetary policy is therefore measure designed to regulate and control the volume, cost, availability and direction of money and credit in an economy to
achieve some specifically micro-economic objectives. It is one policy that seeks to influence economic activities using the tools available to the central bank
i.e. money supply (MS) interest rates and exchange rates. It can also mean the deliberate attempt by the authorities to either control the supply of money or to control interest rates or to ration the amount of credit granted by banks.
