COMPARATIVE EFFECTIVENESS OF MONETARY AND FISCAL STRATEGY ON OUTPUT IN NIGERIA
Abstract
The primary objective of this research is to meticulously assess the comparative effectiveness of monetary and fiscal strategy on economic output in Nigeria, employing data from 1990 to 2022. Employing methodologies such as Ordinary Least Squares (OLS) regression, Augmented DickeyFuller (ADF) unit root examinations, and Johansen cointegration assessments, the study appraises the effects of monetary policy indicators (extensive money supply, exchange rate, interest rate) and fiscal policy indicators (government spending, tax revenue) on Nigeria's actual GDP. The results disclose that both monetary and fiscal strategies significantly sway economic expansion, with extensive money supply and government spending demonstrating positive influences, while exchange rates and interest rates display negative impacts. The research emphasizes the need for synchronized policy maneuvers for optimal economic results, advocating for proficient administration and alignment of monetary and fiscal strategies to guarantee enduring economic expansion in Nigeria.