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POLICY AND
MICRO
ECONOMIC
INSTABILITY IN
NIGERIA
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BY
STUDIES.
SUBMITTED
ADMINISTRATION.
NOVEMBER 2009
2
APPROVAL
business administration. .
Date
Project Supervisor
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DEDICATION
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ACKNOWLEDGMENT
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anti Muareen, bro Paul, Mr Mrs Elvis Abanum,Mrs Ajayi, Miss
of the write up, may God reward every effort of kindness and
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ABSTRACT
rate.
the study which will in turn considers the following topics. The
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chapter four is data analysis and interpretation. The finding,
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CHAPTER ONE
INTRODUCTION
and credit. For many centuries there were only two forms
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generally in the hands of the authority with seigniorage,
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charged, both their own borrowers, and other banks who
required liquidity.
points, i.e from 10.0 per cent to 8.0 per cent. The width
cent which would be the repo rate and the rate at which
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bank trading and encourage banks to free-up resources
markets.
fiscal operations.
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department. MPD, BOD, TED, RSD, FOD, from the bank;
Groups.
future.
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Meeting: The FLAC meet daily in the morning. However,
liquidity position.
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suggestions on policy actions to be taken by the Group
including:
• Timing of intervention
Governor by 9.15 am
to facilitate forecasts.
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The Bank sustained its market driven approach to ensure
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purchase or sell foreign exchange. Monetary decisions
as:
• exchange rates;
• credit quality;
debt);
spending/savings;
scales;
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of payments. However, emphasis on
mechanisms.
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364-day were auctioned during the period. In this
following:
organizations/firms.
business administration.
7. Legal advisers
1.5 Hypothesis
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It is a conjectural statement of the relationships between
HYPOTHESIS THUS:
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2.` Monetary policy is not one of the tools that a
economy.
Alternative Hypothesis(HI)
economy.
gathered.
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scarcity of time and money resources. In nutshell, we
Material Procurement
Time Constraints
Financial Constraints
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visit some of the firms and government agencies located
follows:
1. Introduction
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CHAPTER TWO
LITERATURE REVIEW
but since such cash ratios were usually lower than those
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monetary aggregates, government fiscal deficit, GDP
monetary management
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role of the public sector and accelerate the growth
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framework such as OMO in an economy that had been
environment.
and 1999.
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The rising level of fiscal deficits was identified as a major
effect.
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In line with the CBN Act, 2007, one of the principal
Governor.
that with the new mandate derived from the CBN Act and
looking way.
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The central bank influences interest rates by expanding
the central bank. The primary way that the central bank
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2.5 Developing countries
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hoped, that such policies will import the monetary policy
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The distinction between the various types of monetary
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the relevant foreign currencies is tracking the exact same
Inflation targeting
similar.
policy committee.
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Changes to the interest rate target are made in response
changes in the inflation rate and the output gap. The rule
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fixed exchange rates, which can be ranked in relation to
nation.
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Under a system of fixed exchange rates maintained by a
Index".
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2.10 Monetary policy tools
Monetary base
Monetary policy can be implemented by changing the
monetary base.
Reserve requirements
The monetary authority exerts regulatory control over
multiplier.
Interest rates
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open market operations. This rate has significant effect
Currency board
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exchange rate, whereby local currency in circulation is
nation;
anchor nation;
dollarization).
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currency board). A gold standard is a special case of a
currency.
CHAPTER THREE
population;
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(ii) It is a method in which the researcher manipulates no
workplaces;
brought;
statistically; and
1995).
errors.
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The survey research method also has the merit that data
3.2 SAMPLING
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random sampling. In this research work, the technique of
The list of all senior and junior staff of the firm is from
3.3 Population
Chapter. Warri.
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studying a sample rather than the population includes
that:
Questionnaire
et al, 1976).
(Selltiz, 1976).
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primary data for writing up the researcher’s HND project
respondents to tick.
Interview
communication of a questionnaire.
Observations
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no problem gaining entrance into the office under
ANALYSIS TOOLS
(c) Caption
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Anyiwe (1994) has observed that a table has the
figure;
prose information;
prose formation:
testing.
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Research work is subject to one form of limitation or the
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CHAPTER FOUR
4.1 INTRODUCTION
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In this research work, the research accepts the
chapter include:
Data Presentation,
Percentage analysis
Cross-tabulated analysis
Hypothesis testing
TABLE 4.1
THE SUMMARY OF THE PERSONAL DATA
OF THE RESPONDENTS
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1 SEX FREQUENCY
Male 150
Female 50
Total 200
Angles
2 Marital Status subtended
Married 130 in degree
Single 70
Total 200
3 AGE
21-30 years 90
31-40 years 90
41-50 years 10
51-60 years 10
Total 200
4 HIGHER
EDUCATIONAL
QUALIFICATION
DIPLOMA 10 18
OND 30 54
HND 80 144
FIRST DEGREE 20 36
SECOND DEGREE 40 72
NIM 20 36
TOTAL 200 360
the ages of the 200 respondents they are 21-30 years, 31-
140-
120-
100-
Frequency
80
60 --
40 -
20
-
0 -
MAIL FEMALE
Gender
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Source: from data in table 1 (generated from SPSS) statistical
package for social science.
frequency of 50 of them.
Figure 4.2 below shows the simple bar chart of the data
140 -
120 -
100 -
Frequency
80 -
60 -
40 -
20 -
0 -
MARRIED SINGLE
Marital status
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From figure 4.2 above, it is shown that the married respondents
have the modal frequency of 130 out of the 200 respondents while
40
20
0
51 TO 60 10 63
5.0 5.0 100.0
Figure 4.4 below shows the pie chart of the data on the
respondents.
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FIG.4.4 THE PIE CHART OF THE DATA ON THE
HIGHEST EDUCATIONAL QUALIFICATIONS
OF THE 200 RESPONDENTS
OND DIPLOMA
FIRST DEGREE
5%
15% OND
SECOND DEGREE 10%
20%
HND
80%
FIRST DEGREE 10%
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SOURCE: from the data in table 1.
540, 1440, 360, 720 and 360 and respectively at the center
of the circle.
respondents
39 939
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The above table shows that the total of 100 respondents
an economy.
TABLE 7. Cross-tabulation 2
OND 19 19
HND 14 30 47 91
FIRST
DEGREE 10 9 19
SECOND
DEGREE 40 40
NIM 21 21
Total 104 40 47 9 200
symbol H1.
CHI-SQUARE TEST
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theory and observation can be attributed to chance or
frequencies.
c =∑ (O-E)2/E
Where,O=Observed frequency
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researcher’s time constraints and reduced human error
Residuals
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The observed value of the dependent variable minus the
values.
critical value.
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TEST STATISTICS
Monetary policy is
Monetary policy rests on one of the tools
that a
the relationship between national/federal
Government
the rates of interest in uses to influence
its economy.
an economy.
Chi-Square 73.880 94.120
df 3 3
Level of significance……….0.05
Critical value………………………43.0
Calculated value……………………73.880
hypothesis.
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to influence its economy. The level of significance is
hypothesis.
CHAPTER FIVE
5.0 INTRODUCTION
policy.
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which refers to government borrowing, spending and
taxation.
5.3 SUMMARY
5.4 CONCLUSION
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attempts to influence the overall level of economic activity in
2. Reserve requirements
References
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4. "Bank of England founded 1694". BBC. March 31, 2006.
http://www.bbc.co.uk/history/timelines/britain/stu_eng_
bank.shtml.
5. "Federal Reserve Act". Federal Reserve Board. May 14,
2003. http://www.federalreserve.gov/generalinfo/fract/.
6. Milton Friedman (1960), A Program for Monetary
Stability. Fordham University Press.
7. Ben Bernanke (2006), 'Monetary Aggregates and
Monetary Policy at the Federal Reserve: A Historical
Perspective'.
8. Edward Nelson (2007), 'Milton Friedman and U.S.
Monetary History: 1961-2006', Federal Reserve Bank of
St. Louis Review 89 (3), page 171.
9. Blog: Favorite Friedman quotes
10. Wikiquote
11. "Exchange Rates". The Library of Economics and Liberty.
March 31, 2006.
http://www.econlib.org/library/ENC/ExchangeRates.html.
12. Athanasios Orphanides (2008). "Taylor rules," The New
Palgrave Dictionary of Economics, 2nd Edition. v. 8, pp.
200-04.Abstract.
13. http://www.bos.frb.org/economic/neer/neer2002/neer20
2l.pdf
14. "Monetary Policy Framework". Bank Of England. 2006.
http://www.bankofengland.co.uk/monetarypolicy/framew
ork.htm.
15. "U.S. Monetary Policy: An Introduction". Federal Bank of
San Francisco. 2004.
http://www.frbsf.org/publications/federalreserve/moneta
ry/.
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