1.3 OBJECTIVE OF THE STUDY
The major objective of this research study is to assess the effectiveness of monetary policy in stimulating economic growth in Nigeria. Other specific objectives are:
1. To examine the effectiveness of monetary policy on price stability in Nigeria.
2. To examine the effect of money supply on the gross domestic product (GDP) of Nigeria.
3. To examine the effect of interest rate on the economic growth of Nigeria.
1.4 RESEARCH HYPOTHESES
Hypothesis one
H0: Money supply does not have significant effect on the on the economic growth of Nigeria.
H1: Money supply have significant effect on the on the economic growth of Nigeria.
Hypothesis Two
H0: Interest rate does not have significant effect on the gross domestic product (GDP) of Nigeria.
H1: Interest rate has significant effect on the gross domestic product (GDP) of Nigeria
1.5 SIGNIFICANCE OF THE STUDY
This study on the effectiveness of monetary policy in stimulating economic growth in Nigeria will be useful to policy makers and the central bank of Nigeria in making monetary decisions. It will also serve as a source of information to other researchers who intend to embark on similar project.
1.6 SCOPE AND LIMITATION OF THE STUDY
This study is primary concerned with effectiveness of monetary policies in stimulating economic in Nigeria. The researcher encountered some constraints, which limited the scope of the study. These constraints include but are not limited to the following
a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
1.7 DEFINITION OF TERMS
MONETARY POLICY: Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
ECONOMIC GROWTH: Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concerned with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made by the study
