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Cited by 11Monetary Policy and Economic ImpactEconomic theories and modelsMarket Dynamics and Volatility

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Further insights on monetary transmission mechanism in Nigeria

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Oyadeyi, Olajide Omowonuola, Akinbobola, Temidayo·2022·Journal of Economics and International Finance
DOI 10.5897/jeif2020.1037
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Abstract

This study investigated the response of the different monetary policy channels to several macroeconomic variables in Nigeria and established the dominant channel on output from the period of 1986 to 2017 using quarterly data. Variables such as private sector credit, inflation rate, monetary policy rate, exchange rate, all share index and real output were used to carry out this investigation. The study adopted the structural break and structural VAR methods in achieving the objectives and found a significant standard deviation real effect on each monetary policy channel in the short term, while it also found that innovations arising from a channel itself caused the greatest shock on its future values. The findings further demonstrated that each monetary policy channel had a weak influence on output, with interest rate channel being the dominant channel of monetary policy on output. Finally, the paper suggested that the monetary authority should keep using interest rate as the major policy anchor through which monetary impulses are transmitted into the economy. Key words: Monetary transmission mechanism, interest rate channel, exchange rate channel, credit channel, expectations channel, asset price channel, output, structural vector autoregressive (SVAR).

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References 30 · Cited by 11

Research works printed but not linked: 39

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Metadata

Authors
Oyadeyi, O. O., & Akinbobola, T.
Affiliations
Obafemi Awolowo University (NG)
Corresponding author
Oyadeyi, Olajide Omowonuola
ORCID
Oyadeyi, Olajide Omowonuola
Venue
Journal of Economics and International Finance
Publisher
Academic Journals
Published
2022-04-30
Volume
14
Issue
2
Pages
11-22
ISSN
2006-9812 (ISSN-L)
DOI
10.5897/jeif2020.1037
OpenAlex
W4285409362
Cited by
11
References
30
Citations by year
2026: 1 · 2025: 4 · 2024: 5 · 2023: 1
FWCI
3.46
Type
journal article
Language
en
Open access
Licence
cc-by
Locations
Journal of Economics and International Finance (publishedVersion, cc-by)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic theories and models
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Market Dynamics and Volatility
Keywords
monetary policy transmission, monetary policy transmission channels, interest rate channel, exchange rate channel, credit channel, expectations channel, asset price channel, output, key rate, Nigeria

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Oyadeyi, O. O., & Akinbobola, T. (2022). Further insights on monetary transmission mechanism in Nigeria. Journal of Economics and International Finance. https://doi.org/10.5897/jeif2020.1037

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