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Title
A Theoretical Exposition of Inflation Targeting in Developing Economies: A Lesson for Nigeria |
Full text
http://dspace.unijos.edu.ng/handle/10485/1325 |
Date
2010 |
Author(s)
Tsenkwo, Joseph. B. |
Abstract
Monetary policy affects the rate of inflation with lags of uncertain duration and varying strength, this lags make it difficult, if not impossible, for the central Bank to control inflation on a period-by-period basis. Building on these generally agreed principles, a number of economist see inflation targeting as a framework that can improve the design, implementation, and performance of monetary policy compared with the central Banks 'usual procedures which tend to lack transparency. This article sampled a number of developing countries that have embraced this framework. Using cross sectional data, the paper discovers that inflation targeting countries have actually achieved stability in the conduct of monetary as opposed to non inflation targeting countries. The study therefore advocates that Nigeria should adopt this new framework based on the following factors for the management of its monetary policy. The consideration of both core and headline inflation due to energy and food basket prices; the transition from the minimum rediscount rate(MRR) to monetary policy rate(MPR);the implementation of the financial sector strategy( FSS 2020).All are added impetus to its adaptation. For "soft landing" however, the inflation targeting lite (ITL) should be the category to be considered for now. |
Language
en |
Publisher
Department of Economics, University of Jos |
Relation
Volume 4;Number 1 |
Type of publication
Article |
Identifier
JOS JOURNAL OF ECONOMICS, VOL.4, NO.1 |
Repository
Jos - University of Jos
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Added to C-A: 2017-01-25;09:46:37 |
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