Determinants of Inflation, Exchange Rate, and Output in Nigeria
IMF Working Papers, November 1, 1998
Source details
- Canonical URL
- Determinants of Inflation, Exchange Rate, and Output in Nigeria
Other formats
Bibliographic details
- Authors: Louis Kuijs
- Published: November 1, 1998
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451981735.001
Macroeconomic model and methodology
- Presents a macroeconomic model of the Nigerian economy.
- Estimates long-run relationships for the markets for money, foreign exchange, and (non-oil) output.
- Subsequently estimates dynamic equations for:
- the price level,
- the real exchange rate,
- output.
- Methodology noted as applicable to other economies whose exports are insensitive to exchange rate movements (e.g., other oil-based economies).
Key empirical findings
- Results help explain:
- the dramatic developments on the foreign exchange market during 1983-86 and 1992-94,
- the secular depreciation of the real exchange rate since 1985,
- the rise and fall of inflation during 1991-97.
Subject coverage and keywords
- Subject: Exchange rates, Foreign exchange, Monetary base, Money, Potential output, Production, Real exchange rates
- Keywords: AFEM exchange rate, Africa, co-integration, constant returns to scale, excess demand, exchange rate, exchange rate movement, Exchange rates, GDP deflator, inflation, Monetary base, monetary policy, money demand function, money supply, Nigeria, nominal exchange rate, oil GDP, output, output gap, overvalued exchange rate, Potential output, price level, price level result, production function, Real exchange rates, Sub-Saharan Africa, WP
Content in this bundle
- Determinants of Inflation, Exchange Rate, and Output in Nigeria - WP/98/160