Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Causes of Interest Rate Volatility and its Economic Implications in Nigeria

Wehnam Peter Dabale, Nelson Jagero

Open access

The paper explored causes of interest rate volatility and its implications on the socio-economic development of Nigeria for the year 2000 – 2005 periods. Its objective had been the provision of a deeper understanding of the causes of interest rate volatility and whether this has effects on the Nigerian economy. Data for this study were mainly collected from secondary sources and have been log- linearised. An econometric model specification was then built and E-View 5.0 software was used in computing the data regression analysis. Findings of the study were drawn and indicated the relationship between the dependent variable (interest rate) and independent variables (money supply and required reserve ratio). The research study was concluded with a detailed discussion and recommendations based on the findings.

Agu, C. (2007). “What Does the Central Bank of Nigeria Target?” An Analysis of Monetary Policy Reaction Function in Nigeria A Draft Final Report Presented at the Biannual Research Workshop of the African Economic Research Consortium, Arusha Tanzania October 2007 African Institute for Applied Economics, 128 Park Avenue, GRA, Enugu.
Ajayi, S. I. (1977). “Some Empirical Evidence on the Demand for Nigeria in Nigeria," American Economist, 21, No.1, 51-54.
Anoruo, E. (2002). "Stability of the Nigerian M2 Money Demand Function in the SAP Period." Economics Bulletin, Vol. 14, No. 3 pp. 1-9.
Arize, A. C., and Lott, E. J. (1985). “A re-examination of the demand for money in Nigeria” Atlantic Economic Journal, Volume 13, Number 1/March, 1985, Springer Netherlands.
Central Bank of Nigeria. (2007). Annual Report and Statement of Accounts for the year ended 31st December, 2007: CBN, Abuja.
Clarida, R., Gali, J., and Gertler, M. (1998). “Monetary Policy Rules in Practice: Some International Evidence, European Economic Review, 42: 1033 – 1067.
Friedman, B. M. (2001). Monetary policy, International Encyclopedia of the social & behavioral Sciences, pp. 9976-994.
Gujarati, D. (1995). Basic Econometrics. Mc Graw Hill International Edition. Third Edition.
Hetzel, R. L. (2000). “The Taylor Rule: Is It a Useful Guide to Understanding Monetary Policy?” Federal Reserve Bank of Richmond Economic Quarterly Volume 86/2 spring 2000.
Jhingan, M. L. (2001). “Monetary Economics” 5th Edition, Vrinda publications (P) ltd. Delhi.
Zhang, K., and Liang, B. (2007). An Empirical Analysis for Determinants of Interest Rate Swap Spread. A Master Thesis for Finance Programme, Economics Department, University of Lund.
Nnanna, O. J. (2002). “Monetary policy and exchange rate stability in Nigeria" Paper delivered at a one-day seminar in Lagos organized by the Nigerian Economic Society.
Nwaobi, G. (2002). "A vector error correction and non-nested modeling of money demand function in Nigeria." Economics Bulletin, Vol. 3, No. 4 pp. 1-8.
Phelps, E. S. (1967). “Phillips Curves, Expectations of Inflation and Optimal Employment over Time.” Economica NS 34, no. 3: 254-81.
Phillips, A. W. H. (1958). "The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957." Economica NS 25, no. 2 (1958): 283-99.
Schwartzman, J. B. (1992). Forecasting Interest Rates McGraw-Hill, Inc. USA.
Todaro, M. P., and Smith, S. C. (2006). Economic development, 9th edn. Harlow: Pearson, Addison Wesley.
Torres, A. (2002). “Monetary policy and interest rates: evidence from Mexico” Banco de México, Banco de México, Av. 5 de Mayo #18 5to piso, Mexico City, C.P. 06059.
Vaish, M. C. (2000). “Monetary Theory” fifteenth Revised Edition, Vikas Publishing House PVT Ltd, New Delhi.
Zha, T. (1997), ‘Identifying Monetary Policy: A Primer’ Federal Reserve Bank of Atlanta Economic Review 2nd Quarter 1997.

In-Text Citation: (Dabale & Jagero, 2013)
To Cite this Article: Dabale, W. P., & Jagero, N. (2013). Causes of Interest Rate Volatility and its Economic Implications in Nigeria. International Journal of Academic Research in Accounting Finance and Management Sciences. 3(4), 35 – 42.