Macro-economics, Management, Nigeria.


This paper examines the main source of inflationary pressures, and established the source of destabilization of the exchange and interest rates as the Budget deficit which has been increasing at an unsustainable pace since 1990. It also ascertain that stabilizing the economy will require a significant and sustained budget surplus with no additional domestic bank borrowing. It states that economy stabilization will also require a liberalization of foreign exchange and credit markets.

Author Bio

The author is a Senior Economist, West Central Africa Department, World Bank, Washington D. C.

Publication Title

CBN Bullion


No. 4


Volume 18


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