THE CHALLENGES OF MONETARY POLICY TOWARDS NATIONAL DEVELOPMENT: A MARKETING PERSPECTIVE

Abstract

The study examined   monetary Policy as a measure capable of achieving the desired sustainable economic growth and price stability in Nigeria. The study was carried out using primary and secondary methods in the collection of data, where in primary data; the researcher designed and advanced questionnaires. The data collected from the questionnaire was analyzed in tables with simple percentage and interpreted for the understanding of the study.  The analysis tool that was used in testing the hypothesis was the chi-square (X²). After the presentation and analysis carried out,  The f-statistics which is 901.28 with zero probability is also good, indicating that the selected explanatory variables are in aggregate very important in explaining changes or variations in economic growth in Nigeria. This implies that these explanatory variables such as money supply (m₂), Nominal Exchange Rate (FXR), Maximum Lending Rate (MLR) and Inflation (INF) are all important variables in explaining changes or variations in economic growth. It was observed that the money supply (m₂) contributed positively to the growth of the economy while nominal exchange rate and inflation have a negative impact on GDP which implies that inflation is a constrain. Exchange rate being negative implies that high rate of depression of naira is affecting production capacity especially as most production inputs are being imported. The study therefore recommends as follows; the government as well as the central bank of Nigeria should ensure that the monetary indices are formulated and implemented effectively, amongst others.