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Economic and Financial Review

Authors

B. A. Oke

Publisher

Central Bank of Nigeria, Research Department.

Keywords

Monetary policy, Central Bank of Nigeria (CBN), Net foreign assets, Macroeconomic framework, Oil boom, Gross Domestic Product (GDP).

Abstract

For ease of exposition, the presentation is divided into six parts. Part I contains the theoretical framework for the design of monetary policy. Part Il deals with the conduct of monetary and financial policies and the regime of direct control in 1960-1986. Factors and developments which influence the Bank in adopting specific policy stance and the use of policy instruments are indicated. Part Ill summarises the outcomes of policies pursued during the regime of direct controls. The inadequacies of policy instruments and factors militating against the effectiveness are indicated. The ensuing monetary instability and adverse macroeconomic developments especially in the 1980s leading to a shift to the indirect approach in 1986 are also summarised. Part IV describes the conduct of financial and monetary policy from 1986 to the present. The outcomes of policies are reviewed in Part V. Part VI deals with the lessons of CBN's conduct of monetary policy in Nigeria and proffers some recommendations to guide the conduct of monetary policy now and in the future.

Issue

33

Volume

4

Recommended Citation

Oke, B. A. (1995). The conduct of monetary policy by the Central Bank of Nigeria 1959-1995. Economic and Financial Review, 33(4), 284-316.

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