Determinants of Inflation, Exchange Rate, and Output in Nigeria

Author/Editor:

Louis Kuijs

Publication Date:

November 1, 1998

Electronic Access:

Free Full text (PDF file size is 1439 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper presents a macroeconomic model of the Nigerian economy. The long-run relationships pertaining to the markets for money, foreign exchange, and (non-oil) output are estimated. Subsequently, dynamic equations are estimated for the price level, the real exchange rate, and output. The results are instrumental in explaining the dramatic developments on the foreign exchange market during 1983-86 and 1992-94, the secular depreciation of the real exchange rate since 1985, and the rise and fall of inflation during 1991-97. The methodology could usefully be applied to other economies whose exports are insensitive to exchange rate movements (e.g., other oil-based economies).

Series:

Working Paper No. 98/160

Subject:

English

Publication Date:

November 1, 1998

ISBN/ISSN:

9781451981735/1018-5941

Stock No:

WPIEA1601998

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

33

Please address any questions about this title to publications@imf.org