Abstract
The pursuit of strategies to stabilize and grow her economy within and after
pandemics has necessitated the use of macroeconomic instruments by the government
in Nigeria. Thus, this study investigated the effect of macroeconomic instruments on
Nigerian economy from 2008 to 2022. Exchange rate, inflation rate and interest rate
were adopted as macroeconomic instruments while real gross domestic product was
proxy for Nigerian economy. Ordinary Least Squares (OLS) regression technique was
employed to analyze the data sourced from the Central Bank of Nigeria (CBN)
Statistical Bulletin (various years). Findings revealed that exchange rate and interest
rate had positive and significant effect on Nigerian economy within the period under
review. On the other hand, the study showed that inflation rate had negative and
significant effect on Nigerian economy within the period of the study. This study
recommended, amongst others, that government should keep the inflation rate at a
threshold not exceeding 10 percent in order to enhance the recovery of Nigerian
economy from pandemics.
pandemics has necessitated the use of macroeconomic instruments by the government
in Nigeria. Thus, this study investigated the effect of macroeconomic instruments on
Nigerian economy from 2008 to 2022. Exchange rate, inflation rate and interest rate
were adopted as macroeconomic instruments while real gross domestic product was
proxy for Nigerian economy. Ordinary Least Squares (OLS) regression technique was
employed to analyze the data sourced from the Central Bank of Nigeria (CBN)
Statistical Bulletin (various years). Findings revealed that exchange rate and interest
rate had positive and significant effect on Nigerian economy within the period under
review. On the other hand, the study showed that inflation rate had negative and
significant effect on Nigerian economy within the period of the study. This study
recommended, amongst others, that government should keep the inflation rate at a
threshold not exceeding 10 percent in order to enhance the recovery of Nigerian
economy from pandemics.
Keywords:
Macroeconomic instruments; inflation rate; pandemics; exchange rate; interest rat
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