ABSTRACT

The study examined the impact of monetary policy on economic growth in Nigeria for the period of 34 years (1981-2015).The study employed econometric model using ordinary least square (OLS) to analyses the time series data. In the model, Gross Domestic Product which was used as a proxy for economic growth was regressed against money supply, exchange rate, inflation and monetary policy rate. The study found out that there exist a positive significant relationship between money supply and economic growth in Nigeria, furthermore, there exist a negative but insignificant relationship between exchange rate and economic growth in Nigeria. The study recommended among many others that there is the need to deepen the financial system in Nigeria through improved financial infrastructures as under developed financial markets constrains the effectiveness of monetary policy rates in Nigeria.