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Pyrex Journal of Business and Finance Management Research

December 2016 Vol. 2(10), pp. 196-218

ISSN: 2985-8860

Copyright 2016 Pyrex Journals




Full Length Research Paper


Inflation Targeting and Economic Growth in Nigeria


Bello Zainab Saidu

Gray's International College, Kaduna, Nigeria.

Corresponding Author E-mail: zainabbellosaidu@yahoo.com

Accepted 23rd December, 2016



Abstract


Inflation management is one of the most challenging macroeconomic objectives capable of frustrating every pragmatic effort aimed at achieving sustainable economic growth. This study examines inflation and inflation targeting vis-a-vis economic growth in Nigeria. Methodologically, the study employed the two-stage least squares (2SLS) techniques in examining the impact of inflation targeting for growth, where for, consumer price index (CPI) is said to be functional to money supply, exchange rate, gross domestic product and monetary policy rate on the one hand, and GDP a proxy of growth is functional to inflation targeting on the other hand over a period of 1980-2011. The model ascertained the extent to which policy target influence growth. The results show that inflation targeting is marginally potent to cause growth. The study, therefore, recommends that more policy attention should be given to inflation targeting in-order to achieve sustainable economic growth in Nigeria.

Keywords: Economy, Nigeria, economy, target.

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