Cover IMF Working Papers
Achieving and Maintaining Price Stability in Nigeria
Author: Nicoletta Batini
Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 097
Language:
English
Publication Date:
01 Jun 2004
DOI:
https://doi.org/10.5089/9781451852059.001
ISBN:
9781451852059
ISSN:
1018-5941
Pages:
39
Keywords:
WP; inflation target; central bank; inflation expectation; price stability; managed float; output gap; volatility trade-off
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper reviews the historical performance of monetary policy in Nigeria and discusses the relative merits of alternative monetary policy strategies that Nigeria could adopt in the future, once the many operational issues that today obstruct the conduct of monetary policy have been addressed. An analysis of external and fiscal dominance in Nigeria reveals that none of the candidate strategies is particularly appealing although, on various grounds, a long-run target for inflation combined with a free float seems to be the ultimate option. The paper shows how to design and operationalize such a regime in Nigeria when account is taken for the emerging market features of the economy.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund