Nigerian Economic Performance: Exploring Dynamics of Exchange Rate, Inflation and Economic Output

Fagbemi, Fisayo; Ajibike, John Oluwasegun

doi:10.33094/7.2017.2019.52.57.71

Cited by 1 publication

(4 citation statements)

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“…(2019), and Hossain and Maitra (2020) have found that monetary policy positively affects economic growth. In contrast, the works of Twinoburyo and Odhiambo (2018a, 2018b); Timi (2018); Fagbemi and Ajibike (2019); and Srithilat and Sun (2017) found that monetary policy is ineffective or neutral. This study contributes to the existing literature by providing a comprehensive analysis of the impact of monetary volatility on real output in the context of a major oil producing country.…”

Section: Discussionmentioning

confidence: 98%

“…Our results are consistent with the findings in the economics literature, for example Twinoburyo and Odhiambo (2018a, 2018b), Timi (2018) et al . (2019) and Srithilat and Sun (2017).…”

Section: The Discussionmentioning

confidence: 99%

“…Moreover, real exchange rate has a positive impact on income, and trade openness has a positive (negative) impact on income in the short run (long run). On the other hand, Fagbemi and Ajibike (2019) confirmed the direction of causality between GDP and exchange rates. However, they also confirmed the long run negative relationship between economic performance and exchange rate and found that long‐run depreciation stimulates economic growth.…”

Section: Review Of Related Literaturementioning

confidence: 94%

“…Both techniques show how shocks to variables are reflected by a vector autoregressive system (VAR). Impulse response functions show the effects of shocks on the variable adjustment process (Fagbemi and Ajibike, 2019). Due to space constraints, only the impulse response function is presented.…”

Section: Methodsmentioning

confidence: 99%

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Monetary volatility and the dynamics of economic growth: An empirical analysis of an oil‐based economy, 1970–2018

Algaeed

Algethami

2022

OPEC Energy Review

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Over the past decades, and since the first development plan in 1970, Saudi Arabia has controlled the stability of its economy through prudent fiscal policy and tight monetary policy. This study examines the impact of monetary volatility on real gross domestic product (GDP) growth in an oil‐based economy from 1970 to 2018, using the Hodrick–Prescott filtering approach. Although standard methods such as GARCH are used to test volatility, the uniqueness of this study is that it tests the volatility of monetary policy using ordinary least squares (OLS), autoregressive distributed lag (ARDL) and IRF methods. We find that the standard deviation of the broad money supply and the real interest rate business cycle tends to have a negative impact on real growth in the short and long run, supporting the proposition that a high interest rate negatively affects real growth. We also document that the standard deviation of the real exchange rate business cycle has a positive (negative) effect on real growth in the short and long run and is not statistically significant. This suggests that the volatility of the real exchange rate does not affect real growth. Moreover, the magnitude of the volatility of the coefficients is lower in the long run than in the short run. To achieve sustainable economic growth, policy makers need to plan how to manage the volatility of the money supply and the interest rate in the short run and develop long‐run strategies to manage volatility in the long run. To control monetary volatility, policymakers should also control government spending by dampening the volatility of oil prices, which ultimately affect the money supply and thus stable economic growth.

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Section: Discussionmentioning

confidence: 98%

“…Our results are consistent with the findings in the economics literature, for example Twinoburyo and Odhiambo (2018a, 2018b), Timi (2018) et al . (2019) and Srithilat and Sun (2017).…”

Section: The Discussionmentioning

confidence: 99%

Section: Review Of Related Literaturementioning

confidence: 94%

Section: Methodsmentioning

confidence: 99%

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