Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 312

Article in Press

Monetary policy pass-through in Nigeria: An autoregressive distributed-lag (ARDL) bound testing approach

Uduak Michael Ekong

  •  Received: 14 June 2018
  •  Accepted: 14 June 2018
The paper investigates on the lingering issue of monetary policy transmission from the perspective of Nigeria from 1980 to 2016. Applying a two way techniques of Vector Autoregression and Autoregressive Distributed Lag, we found that jointly considered, monetary policy does not have any long run relationship with economic activity, credit transmission channel is ineffectual in monetary policy transmission in Nigeria, and money supply, interest rate and the exchange rate channels are positive channels of monetary policy transmission in Nigeria. Key policy recommendations were monetary policy approach that is more fiscal in nature and instrument specific policies for economic specific issues to grow the country above recessionary growth trajectory.

Keywords: Monetary policy, economic activity, transmission channels, ARDL, Nigeria.