A systematic and non-systematic approach to monetary policy shocks and monetary transmission process in Nigeria

Oyadeyi, Olajide Omowonuola

doi:10.5897/jeif2022.1170

Cited by 7 publications

(1 citation statement)

References 33 publications

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“…Furthermore, Oyadeyi and Akinbobola (2020) were of the view that global shocks affect the monetary policy transmission of developing countries. These results were corroborated by other studies, such as Oyadeyi (2022aOyadeyi ( , 2023a and Oyadeyi and Akinbobola (2022). Jefferis (2007) examines the monetary union of Southern African Development Countries (SADC).…”

Section: Empirical Issues On Monetary Integrationsupporting

confidence: 78%

Monetary Integration Across West Africa: Is the Region Ripe for a Monetary Union?

Oyadeyi

2024

Sage Open

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This study investigates the possibility of forming a monetary union across West Africa. This was achieved by employing the structural VAR framework. Data on real GDP, inflation, and exchange rate were used to represent supply, monetary, and demand shocks from the period 1986 to 2020. The impulse response and variance decomposition results showed that shocks affecting the West African region are idiosyncratic, while the residuals of the structural VAR were used to compute the correlation coefficient. The correlation coefficient revealed that the demand and monetary shocks were symmetric across WAEMU countries and asymmetric for the rest of the region. The study suggests that the West African region is not ripe for a monetary union. However, the study opined that the WAEMU countries are the closest to forming a West African monetary union and a piecemeal approach may be adopted such that the WAEMU countries are the first to form the union, while the rest may join when they meet the convergence criteria. In essence, West African countries’ central banks need to focus on harmonizing their monetary policies and remove all barriers to factor mobility for the synchronization of shocks and for all countries to meet the convergence criteria.

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Section: Empirical Issues On Monetary Integrationsupporting

confidence: 78%

Monetary Integration Across West Africa: Is the Region Ripe for a Monetary Union?

Oyadeyi

2024

Sage Open

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The Velocity of Money and Lessons for Monetary Policy in Nigeria: An Application of the Quantile ARDL Approach

Oyadeyi

2024

J Knowl Econ

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The paper investigates the determinants and stability of the income velocity of money while accounting for structural breaks in its approach from the period Q1 1981 to Q4 2023 in Nigeria. The paper extends previous works by accounting for four velocities of money functions having accounted for structural breaks in its approach. The study adopted the Bai and Perron breakpoint test, the Zivot and Andrews, and Perron and Vogelsang structural break unit root tests to determine the break dates and the variables’ stationary properties. In analyzing the main results, the study used the quantile ARDL method to establish the determinants of income velocity of money in Nigeria, while it used the CUSUM tests to establish the stability of money velocity in Nigeria. The study found that the determinants of the velocity of money are per capita income, the exchange rate, financial development, inflation, and the interest rate across the four models. Furthermore, the four velocities of money functions were unstable for Nigeria using the cumulative sum and cumulative sum of squares tests. Consequently, the study recommends effective monitoring and the provision of sound monetary policies to ensure a stable and predictable velocity of money. This can be achieved by understanding and focusing on these key determinants and crafting informed strategies to manage economic growth and stability. This holistic approach ensures that the benefits of economic policies are felt broadly across the economy, ultimately bolstering overall financial health and enhancing the velocity of money, which is crucial for sustained economic progress.

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How did African stock markets react to the Russia-Ukraine crisis “black-swan” event? Empirical insights from event study

Oyadeyi,

Arogundade,

Biyase

2024

Humanit Soc Sci Commun

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This study builds on the recent literature by investigating how various types of African stock markets responded to the Russia-Ukraine crisis (commonly referred to as the black-swan event). The empirical analysis used in this paper centred on event study analysis, a statistical technique used to measure the impact of a specific event. The findings show that the black-swan event had a significant negative impact on African stock markets (14/20), with stocks having a negative abnormal return on the event day, and out of this, nine stocks’ abnormal returns are statistically significant. These include Safaricom Kenya, Commercial International Bank, Attijariwafa Bank, Morocco Casablanca Index, Egyptian Exchange 30, Nairobi All Share Index, AVI Equity, MCB Group Ltd, FTSE/JSE All Share, Delta Corp. Ltd, Stock Exchange of Mauritius, Tunisia Stock Exchange, Tanzania All Share Index, and Banque de Tunisie. Furthermore, the study discovers that African stock markets reacted heterogeneously to the impact of the crises, while some stocks were severely affected, some were minimally affected. The study concludes that African stock markets should build a resilient market capable of withstanding external shock and reducing the risk of contagion.

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A systematic and non-systematic approach to monetary policy shocks and monetary transmission process in Nigeria

Cited by 7 publications

References 33 publications

Monetary Integration Across West Africa: Is the Region Ripe for a Monetary Union?

Monetary Integration Across West Africa: Is the Region Ripe for a Monetary Union?

The Velocity of Money and Lessons for Monetary Policy in Nigeria: An Application of the Quantile ARDL Approach

How did African stock markets react to the Russia-Ukraine crisis “black-swan” event? Empirical insights from event study

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