Abimbola Florence Arotiba, Alexander Ehimare Omankhanlen
This study undertook an investigation to find out the impact of monetary policies on the economic development of Nigeria. Economic development in this study is proxied by the human development indicator which captures both the economic as well as social conditions. Exchange rate, interest rate and inflation rate were used as proxies for monetary policy. The annual data for the analysis from 1991 to 2020 was gotten from the World Bank Statistical Bulletin. The study found that interest rate had a considerable positive influence on the human development indicator in the short run but had an insignificant negative effect in the long run, using Autoregressive Distributed Lag (ARDL) methodology. The exchange rate was also revealed to have an insignificant and positive influence on economic development in the short run as well as in the long run. Based on the findings, the study stated that the government should focus on setting monetary policy rates that will attract investment and bring about an improvement in the human development indicator and consequently, economic development.
Monetary Policy, Economic Development, ARDL
Cite this paper
Abimbola Florence Arotiba, Alexander Ehimare Omankhanlen. (2021) Monetary Policy And Economic Development In Nigeria: An Ardl Approach. International Journal of Economics and Management Systems, 6, 596-604