Macroeconomic Effects of Monetary and Fiscal Policies interactions on Economic Growth Dynamics in Nigeria
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Department of Economics, University of Lagos
Over the years, the Nigerian economy has been faced with continuous disequilibrium and complexity in policy direction that constitutes a major setback in the growth pattern and macroeconomic instability. In this regard, the paper investigated the effectiveness of fiscal and monetary policy interactions on real output growth in Nigeria between 1999 and 2016. The multiple least square estimators have captured dynamic analyses of variables. The estimated findings reveal that both fiscal and monetary policies variables are effective in stimulating economic growth in the country. However, it was found that fiscal-monetary policy interactions have a significant but negative impact on real GDP in Nigeria for the period considered. Thus, it seemed that in past there was no evidence of synergy between fiscal and monetary policies interactions in achieving economic growth in Nigeria. It is therefore recommended that, in order to put the Nigerian economy on the path of sustainable growth, the government must co-ordinate fiscal and monetary policies and adopt a policy mix that will promote growth and greater welfare of the citizenry.
Macroeconomics , Fiscal policy , Monetary policy , Economic growth , Research Subject Categories::SOCIAL SCIENCES::Business and economics
Salis K.Y and Saibu M.O (2019) Macroeconomic Effects of Monetary and Fiscal Policies interactions on Economic Growth Dynamics in Nigeria in Leading Issues in Macroeconomic Stabilisation and financial Development: A festschrift in Honour of Professor Oluwatayo Fakiyesi Edited by R,O,S Dauda, S.O Akinleye & E.D Balogun Chapter 19 Pp 391-410