II. A Brief History of Inflation in Nigeria: 1980–2003
A. Recent Inflation Performance in Nigeria
B. Viable Monetary Policy Strategies for Nigeria
III. Stylized Facts on Nigeria’s External Dominance and Monetary Transmission
A. Volatility of Selected Variables
C. Exchange Rate Pass-Through
D. Commodity-Price Sensitivity
E. Fiscal Sustainability and Risk Premia on Sovereign Debt
IV. A Way Ahead for Monetary Policy in Nigeria?
V. Opting for Price Stability in Nigeria
A. Which Stable Prices/Free Float Regime for Nigeria?
B. A Target for Stable Prices in Nigeria
VI. Operationalizing Price Stability in Nigeria via a Simple Plan
A. How Should Taylor Rules be Used in Emerging Market Economies?
VII. The Historical Taylor-Rule-Implied Path for Nigeria
A. Taylor Rules for Nigeria
B. Taylor Rules for Other Emerging Market Economies
VIII. Concluding Remarks and Policy Implications
1. Volatility and Average of Selected Variables for 1997 Q1-2002 Q2
2. Total Trade-to-GDP Ratios, Selected Emerging Market Economies
3. Variance Error Decomposition (4-, 8-, and 12-quarter horizon)
4. Emerging Markets Bond Index+ (EMBI+)
1. Nigeria: Annual CPI Inflation, Output Gap, and Nominal Interest Rate
2. Nigeria: Fiscal Trends and Oil Price
3. Inflation-Output Volatility Trade-Offs, Inflation-Targeting Developed Economies, and Emerging Market Economies and Nigeria
4. Nigeria’s Nominal Effective Exchange Rate (in logs): 1990 Q1–2002 Q4
5. Nigeria Minimum Rediscount Rate (MRR) vs. Taylor-Rules-Implied Rates
6. Chile: Actual Nominal Rate vs. Taylor-Rules-Implied Rates
7. Brazil: Selic Rate vs. Taylor-Rules-Implied Rates
8. South Africa: Actual Nominal Rate vs. Taylor-Rules-Implied Rates
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