Front Matter

Front Matter Page

Contents

  • I. Introduction

  • 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

    • B. Openness

    • 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

  • Tables

  • 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+)

  • Figures

  • 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

  • References

Achieving and Maintaining Price Stability in Nigeria
Author: Nicoletta Batini