Article(s) about Inflation

A. What Is Inflation? - Inflation is one of the most frequently used terms in economic discussions, yet the concept is variously misconstrued. There are various schools of thought on inflation, but there is a consensus among economists that inflation is a continuous rise in the prices. Simply put, [Read more]

Monetary policy affects all aspects of our economic and financial decisions-whether to buy a car, build a house, start up a business or to expand the existing one, whether to send one’s child to school or to make the child learn a trade. Monetary policy tries to influence the performance of [Read more]

The central bank use monetary policy to achieve the goals of macroeconomic management. Consequently, monetary policy is employed as a tool to control or influence monetary aggregates such as interest rates, money supply and bank credit, including the exchange rate, with a view to achieving set [Read more]

Prior to the banking sector consolidation exercise that was concluded in December 2005, the framework for monetary policy in Nigeria had witnessed some transformation. This included the shift from the use of direct monetary policy control to indirect (market-based) monetary management, and the [Read more]

In Nigeria, the major objectives of policy are the attainment of price stability and sustainable economic growth. Associated objectives are those full employment and stable long-term interest rates and real exchange rates. In pursuing these objectives, the CBN recognises the existence of [Read more]

The current monetary policy framework is based on the targeting of bank reserves as operating target with monetary aggregates as intermediate target. The ultimate objective is to influence the general level of prices - inflation. Monetary targeting implied by the current practice was considered [Read more]