An assessment of central banking on unemployment and poverty: The case of Nigeria

Abstract

This paper assesses the impact of Central Bank monetary policies on living standards in Nigeria from 1980 to 2017, using eclectic regression techniques. The outcome reveals that unemployment growth is positively sensitive to policy rates and money supply. Per capita income is negatively sensitive to police rate, which suggests that policies do not address structural weaknesses that influence rapid price variations. The study thus fails to reject the hypothesis that Central Banking policies may be accentuating unemployment and poverty in Nigeria. The paper recommends low policy rate possibly at the middle of single digit; an indexed-wage system; and stoppage of money supply through ways and means.