•  
  •  
 

Economic and Financial Review

Publisher

Central Bank of Nigeria (CBN), Research Department

Keywords

Monetary policy, Real exchange rate, Balance of payments, Exchange rate theory, Interest rate, Money demand

Abstract

The following comments are based on Mr. Asogu's paper titled as above and which appeared in the December 1985 edition of the Economic and Financial Review. The objective of the study is" to use the monetary approach to the balance of payments (MABOP) and exchange rate theory of an open economy to determine the existence and significance of the links and relationships among macro-economic variables which are regularly applied in monetary management of both the domestic and external sectors". The author hoped that through this procedure he could "provide a basis for rethinking about the adequacy or otherwise of current stance in monetary policy for the achievement of desired targets with minimal distortions on all the sectors". Although one objective thus appears to have been listed by the author, the various tests carried out in the body of the paper actually indicate that the author had several objectives which he intended to achieve. In particular, several equations were developed for the explanation of interest rates, exchange rates, reserves, and money demand in Nigeria. The reviewer concludes that the author failed to show the interactions among the equations which would convince the reader that only the objective stated in his introduction was being pursued.

Issue

24

Volume

1

Recommended Citation

Akinnifesi, E. O. (1986). Independence of monetary management and exchange rate regimes: evidence from Nigeria, 1961 – 1982: comments. CBN Economic and Financial Review, (EFR), 24(1), 62-64.

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.