Evidence has shown that inflation persist both the developed countries and developing countries, with difference in magnitude or rates, however, making comprising with present situation. Changes in interest rate determines the rate of inflation. In most authoritative and copperhead unanticipated inflation as well as changes in expectation as explanatory variables. This was due mainly on the shortage of goods and services caused by the disruption of productive factors by the civil war. The significant of this study lies on the fact that huge amount of resources Human an capital are unemployed which could cause poor economic performance. These difficulties did not discourage the researcher as the challenges were boldly faced. The continued over valuation of the naira in 1980, even after the collapse of the oil boom engendered significant economic distortions in production and consumption as there was a high rate of dependence on import which led to balance of payment deficits.
Evidence has shown that inflation persist both the developed countries and developing countries, with difference in magnitude or rates, however, making comprising with present situation. However, inflation can equally have some positive effects on the economy through its impact on capital accumulation and capacity to reduce the severity of economic recession by enabling the labour market to adjust more quickly in a down turn and also reduces the risks that a liquidity trap prevents monetary policy from stabilizing the economy Anyanwu, 1995. Inflation became rampant in Nigeria after the Nigerian civil war, though it might have been in existence bough before then. A person is said to be unemployed when he or she is able and willing to work and is available for work the person is actively searching for employment but does not have work. The main reason for allowing inflation is because it allows for substantial redistribution of income and wealth from savers to borrowers that is from those who cannot protect themselves from the rise in the price of what they buy by raising the price of what they sell to those who can afford. The inflationary pressure further appreciated by high demand of imports and both intermediate inputs and consumer goods due to over valuation of the naira, which made imports relatively larger than locally manufactured good, Ahmed, 1992. Again worthwhile to note is the fact that during inflatary period, savings decline.
For , please click here, we have answers to your questions. This economic transformation has spread far and wide in the recent times but its spread is highly limited in Africa. Monetary policy is therefore measure designed to regulate and control the volume, cost, availability and direction of money and credit in an economy to achieve some specifically micro-economic objectives. Since independence, we have been suffering from inflation and interest rate till central bank interned their new system abolished all control on interest rate and allow banks to fix their own interest rate. To recommend measures for effective control of inflation through monetary measures. China's rapid growth and ever-increasing economic importance imply a need to understand its inflation developments. On the other hand, unemployment can be regarded as a situation where the active puplations working class who are capable and willing to work at a prevailing market wages are unable to find job.
Differences in cost of living between locations can also be measured in terms of rates. To find out whether currency devaluation is a cause of inflation. It can also mean the deliberate attempt by the authorities to either control the supply of money or to control interest rates or to ration the amount of credit granted by banks. Furthermore inflation is generally used to describe a situation of rapid persistence and unacceptable increase in general price level in any economy which brings about decrease in the value of currency. Or where there is a full in the purchasing power on naira currency. In the years 1980-1985 development plan of N82 Billion was planned for expenditure.
Having registered low rates of inflation in years immediately after independence. This study intends to investigate the causes and effects of inflation in Edo State. Also effect of inflation on low-income earners and effect on income measurement will be determined. This reviews stated with Adebo Award of 1970, which was followed by the Udoji and Williams awards o 1974, and also 45% increase in salaries implemented by Gen. Also there should be expansion in agriculture in the locality as well as Edo State through institutionalized farming, preferably with government participation and appropriate incentives to individual farmers.
Findings and recommendations from this study will be of great benefits to financial institutions in Nigeria, as the recommendations if implemented will go a long way in guaranteeing a sustainable and sound economy. As we have know what inflation is all about and as well the effect it has in an economy, we need to fight it very seriously to prevent it coming to our economy because it may come in, the economy is to suffer much on it. Based on the aforementioned, it is obvious without any base that the Nigerian leadership is too primitive and extremely corrupt considering the inflationary trend counter pants in the advanced economic states like the U. Secondly, that Nigeria should diversify its economy instead of over depending on oil. Housewives now complain that N500.
If you need other Economics Project topics and materials, simply fill the form below or send us email and we shall provide the Economics Project topics and materials in less than 1 hours. The period 1992- 1995 recorded high rate o9f inflation apart from three reason earlier identified, political uncertainties arising from the annulments of 1993 elections results adversely affected capacity utilization and hence low output of goods and services, resulting in high inflationary trend. Once they cannot save their resource means that banking industries is affected. In particular it is generally accepted that inflation and unemployment have negative effect on short, medium and long term economic growth Broms and Easterly, 2008 Inflation and unemployment are always regarded as a trade-off as any policy targeted at reducing one, will lead to escalating of the other. Inflation is said o occur when the genral level of prices rises rapidly and persistently over a givebn period of time. To analyze the factors affecting the economy and their implications on the economyTo suggest and recommend ways of imploring Nigeria economy. This means your tires wear longer, save fuel and help prevent accidents.
In the case of Nigeria, the highest rate were attained in the late twentieth century 1969 — 1975. How will the government bridge the gap between the fixed income earners and profit earners? To maintain a relative stable level of price payment position at a fixed stable exchange rate of growth. Following the works of Khan and Senhadji 2001 , Sweidan 2004 and Mubarik 2005 , this work attempt to carry out an empirical investigation of the relationship between inflation and economic growth. Thus, the stability upon which lending and borrowing depends is undermined. The study when carried out will also be of great benefit to student researchers who have interest in researching more into inflation and cost of living. Also when the volume of money in circulation is greater than the available goods and services so that there is a continuous tendency for average price level rise. The coverage of this study is between 1970-2008.
In addition to her contemporary fiscal and monetary policies, the Nigerian government had implemented various other policies aimed at curbing inflation in the country. The estimation period would be restricted to the period between 1982 and 2012. There have been in existence, variations in magnitude or rats. Meanwhile, the dynamic feature of unemployment has several factors being temporal or chronic in nature. Sub-charge from port congestion, storage facilities, marketing arrangements plus the distribution network, the impact of second tier foreign exchange market and removal of oil subsidy. Inflation is now one of the intractable problems facing the Nigeria economy.