THE EFFECT OF INFLATION AND INTEREST RATE ON ECONOMIC GROWTH OF NIGERIA
The gross Domestic product Growth is a long term rise in the capacity to supply increasingly diverse economic goods o its population. This growing capacity is said to base on advancing technology.
It is only through an effective economic system that human and material resources of the nation could be mobilized between the government and the governed. The concept of economy development of Nigeria with its objectives is aimed at standard and mobilization or mobilizing the functions and financial resource is to encourage initiative and leadership potential.
There is still need for government to creative conducive social and political environment to attract foreign investors in various aspects of the Nigeria economy. To this end of the democratization process will be in progress to encourage the earnest pursue.
The research major objective is to identify how inflation and interest rate has affected economic growth in Nigeria and suggesting recommending ways of improving Nigeria economy. This problems on GDP was critically examine.
In handling the research, secondary and primary data where source with the use of questionnaire and oral interview, while secondary data sources are test books.
The analysis of data was based on percentages. It is on the strength of the finding that recommendation and conclusion was made.
TABLE OF CONTENT
1.2 STATEMENT OF PROBLEMS
1.3 OBJECTIVE OF STUDY
1.4 RESEARCH QUESTION
1.5 STATEMENT OFNHYPOTHESIS
1.6 SIGNIFICANCE OF STUDY
1.7 SCOPE & LIMITATION
1.8 DEFINITION OF TERMS
2.0 LITERATURE REVIEW
2.1 INTEREST RATE MANGEMENT IN NIGERIA
2.2 FACTORS INFLUENCE INTEREST RATE
2.3 MANAGEMENT PRIOR 2003/ MONETRY DEVELOPMENT
2.4 CASE FOR INTEREST CELING
2.5 CASE AGAINST INTEREST CELING
2.6 INFLATION AND UNEMPLOYMENT
2.7 INFLATION AND ECONOMIC GROWTH
2.8 EFFECT OF INFLATION ON SAVINGS/ GROWTH
2.9 INFLATION AND GROWTH IN DEVELOPING NATION
2.2.1 EMPRIRCAL STUDY ON RELATIONSHIP ON INLFATION
AND ECONOMIC GROWTH IN LATIN AMERICA OTHER COUNTIRES
2.2.2 EMPHRICIAL EVIDENCE BASED ON SOME AFRICAN COUNTRIES
3.0 RESEARCH DESING AND METHODOLOGY
3.1 RESEARCH DESIGN
3.2 RESEARCH METHODOLOGY
3.3 AREA OF STUDY
3.4 LOCTION OF DATA
3.5 INSTRUMENT OF DATA COLLECTION
3.6 METHOD OF DATA PRESENTATION
3.7 TECHNIQUES OF DATA ANALYSIS
4.0 PRESENTATION OF DATA AND ANALYSIS OF RESULT AND INTERPRETATION.
4.1 PRESENTATION OF DATA
4.2 ANALYSIS OF RESULT
4.3 TOST OF HYPOTHESIS
5.0 SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION
5.1 SUMARY OF FINDINGS
Every country in the world aim at achieving economic growth and development. This is only possible if a country has adequate sources. In developing countries especially those in sub-saharan Africa. The resources to finance the optimal level of economic growth and development are in short supply.
Inflation, economic growth and interest rate concepts that are central and interrelated in Macro economic. A proper understanding of these concepts is therefore very necessary in order to get a good grasp of how inflation and interest rate has effected growth in Nigeria over the past eleven years. Is from this view that gives what have been expressed by various people to the theoretical and empirical relationship that has been estimated between them.
Inflation is said o occur when the genral level of prices rises rapidly and persistently over a givebn period of time. This is undesirable to the public and policy makers. From this of view of the public inflation causes uncertainty about future prices. This effect decisions on expenditure, savings, investment and misallocation of resources. It also allows substantial in distributions of income and wealth from savers to borrowers. To policy makers, inflation hampers economic growth and development as it discourages investment and savings. These factors explain why policy makers put in lots of efforts to reduce inflation and why several authors focus attention on this issue. Inflation is now one of the intractable problems facing the Nigeria economy.
Having registered low rates of inflation in years immediately after independence. The country experience double digit in 1960. this was as a result of the civil war. The next period of high inflation was (1974- 1979), when the wage freeze was discontinued as recommended by Udoji salary review commission.
Reduction of the high inflationary pressure is considered one of the most critical Macro- economic objectives in Nigeria. A number of approached to the explanation of the phenomenon of