Monetary Policy and Nigeria's Economic Development

Abstract

This study investigated the impact of monetary policy instruments on the economic development of Nigeria, using multiple regression technique. It was found that cash reserve ratio was significant in impacting on the economic development of Nigeria at both 1% and 5% levels of significance, treasury bill at 5.6%, minimum rediscount rate at 7.4% and liquidity rate at 7.7%, while interest rate was not significant at all. It is recommended that the country pursues vigorously the development of the money and capital markets so that the monetary policy instruments would be allowed to play more positive impact in addition to combining them with fiscal policies