The Impact of Monetary Policy on Balance of Payment in Nigeria

The Impact of Monetary Policy on Balance of Payment in Nigeria

In economic literature, divergent views exist on what constitute monetary policy and what the concept of balance of payment is all about, and at the same time what monetary policy seeks to achieve.

According to Udegbunam (2003), “Monetary policy is widely understood to be an important instrument of macro economic demand management, despite the lack of consensus among economics on how it actually works and on the magnitude of its effects on the economy.”  Emeko (2008) also cited this in his study of monetary policy and macroeconomic stability in Nigeria. [Read more…]