Moreover, monetary policy focus should be on long-run output expansion and short-run price-stability, rather than the converse.This would have the benefit of moderating poverty and unemployment.Second, the effect of monetary policy on aggregate demand is investigated, since it constitutes the intermediate target of policy.
These findings and their policy implications are not entirely surprising given the institutional features of the Nigerian economy.
The relative importance of demand vis-à-vis supply factors as well as the cost and benefits of disinflation are thereafter determined.
These are analysed using both theoretical and empirical approaches.
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