REVIEW OF MONETARY AND FISCAL POLICIES IN THE NIGERIA ECONOMY. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
Occasionally, the nation is faced with economic instability, this could be as a result of less or too much money in circulation, therefore the researcher intends to write on laws these problem could be solved through the implementation of monetary and fiscal policy tools.
In addition, the essence of the research work is to review and as well as identify the various means of expanding and controlling the volume of money in circulation in period of deflation and inflation respectively.
Furthermore the research intends to source her data through secondary source as recommended; this entails the review of related textbooks, journals and other publications.
Since this research work is restricted to the secondary source of data, the researcher intends top locate her data from following places. IMT library, ESUT library, National library and CBN library.
Conclusively it is believed that at the end of this research work, the data/information contained in this work will contribute positively to measure of regulating the Nigerian economy through the implementation of the monetary and fiscal policy tools.
1.1 BACKGROUND OF THE STUDY
The Central bank of Nigeria (CBN) started with effect from 2002 fiscal year, adopt a medium term perspective monetary policy framework. Unlike earlier program which where designed for one year, the new programmes is for a two year period beginning January 2002 to December 2003. the shift is in recognition of the fact that monetary policy actions affect the ultimate objectives of policy with a substantial lag. Thus, the current shift will free monetary policy implementation from the problem of time inconsistency and minimize over reaction due to temporary shock..
This circular outlines the monetary, credit, foreign trade and exchange policy guideline applicable to bank and others financial institution in Nigeria in 2002/2003. in particular, monetary and credit policy will be implemented within the framework of the medium term programme. The guidelines will be subjected to fine turning in the light of development in monetary and financial market conditions, as well as the performance of the economy, which could be conveyed to the relevant institutions in supplementary circulars as necessary. The circular contains four major sections and four appendices following the in production, which is section 1, section 2 review the development in the economy and policy environment in 201 and thus 2002/2003. section 3 outlines the monetary and credit policy financial institutions in fiscal 2002, while the foreign trade and exchange policy measures are highlighted in section 4. the appendices contain prudential guidelines for licensed banks and reporting format.