Abstract:
This work examines the effectiveness of monetary policy in Nigeria for a
period of 8 years (1992-2001 ). In the process of the study the failure and success of
monetary policy was compared in line with its objectives.
In carrying out the study primary and secondary data was used and data was
extracted from published and unpublished literature Direct interview method was
used.
Relevant data was presented and analysed using linear regression method.
Data is presented in tabular form while percentage movement in variable is
employed to aid analysis
The findings reveal that monetary policy has actually helped in the
directional flow of funds to the vital sectors of the economy like Agriculture,
Housing etc.
It also reveals that the savings structure of banks has not been significantly
influenced by interest rate because of improved banking habit of the populace.
Though monetary policy was meant to Checkmate the supply of money to
the economic and maintain the value of our currency and stimulate economic
growth.
Among other recommendations the researcher is of the view that in order to
improve the efficiency of monetary policy the administration of the monetary
policy instruments should be fine turned and enforced to ensure that they are
binding on all banks Again Central bank & government should look for a way to
control funds in private hands which if not properly managed undermine the
objective of monetary policy in Nigeria
