The Dynamics of Monetary and Fiscal Policy as a Tool for Economic Growth: Evidence from Nigeria

摘要

The study investigated the dynamics of Nigeria’s monetary and fiscal policies, focusing specifically on the effects on the growth of Nigerian economy. The fundamental objective is to examine the effect of monetary and fiscal policy in Nigerian economic growth. The paper employed the Engle-Granger and Johansen-Joselius method of co-integration in a VECM setting. The empirical results demonstrated that there exist a long-run linear relationship between the dependent variable and the explanatory variables, meaning that both monetary and fiscal policy contributed to the growth of Nigerian economy. Based on the above reason the paper, therefore recommended that both monetary and fiscal policy should have the same objectives at a time.