Effectiveness of Quantitative Monetary Policy Implementation in the Success of Full Employment in Nigeria: 1986-2018
Chukwu Kenechukwu Origin *
Department of Banking and Finance, Nnamdi Azikiwe University, Awka, Anambra State, 5025, Awka, Nigeria.
Ezekiel Okoh Oghenetega
Delta State Polytechnic Otefe-oghara, Delta State Nigeria.
Chimarume Blessing Ubah
Department of Banking and Finance, Nnamdi Azikiwe University, Awka, Anambra State, 5025, Awka, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study investigated the effectiveness of quantitative monetary policy implementation in the success of full employment in Nigeria (1986-2018) using secondary data from Statistical bulletin of Central Bank of Nigeria. The research work used the ARDL Auto-regressive Distributed lag models to test the effect of the independent variables (Cash Reserve Ratio, Broad Money Supply, Monetary Policy Rate, Exchange Rate and Liquidity Ratio) on the dependent variable (Employment Rate). The research discovered that quantitative monetary policy instruments had insignificant but positive effect on the employment rate in Nigeria. The research therefore advocates that Government should embark on joint harmonization of fiscal and monetary policy. Central Bank should adopt expansionary monetary policy in order to infuse more funds in the economy. Equally Central Bank should build an efficient and sustained low interest rate intervention fund to support the real sector, especially small and medium enterprises. Government should try to operate a single exchange rate unlike multiple exchange rates it operates within the period of the study.
Keywords: Quantitative monetary policy, employment