Sacrifice ratio, Disinflation, Output losses.
This study empirically investigates the existence of a sacrifice ratio for Nigeria and to measure it, if one exists over the disinflation episodes. The study adopted the Ball (1994) methodology and the Hodrick-Prescott (HP) filter technique to examine the cost of disinflation to Nigeria. Six (6) disinflation episodes were identified over the 2000Q1 – 2018Q2 period and the results obtained indicated varying amounts of output losses over the different episodes under study. The findings suggested that a 1% disinflation resulted in output losses ranging from - 0.02% to 0.44% for the Nigerian economy. Both methods, however, suggested that the latest disinflation episode (2016Q3-2018Q2) promoted output growth
Tony Odu, Ada and David Anih, Onyebuchi
"An empirical analysis of the sacrifice ratio in Nigeria,"
Bullion: Vol. 42
, Article 4.
Available at: https://dc.cbn.gov.ng/bullion/vol42/iss4/4