Inflation And Economic Activities In Nigeria

Inflation And Economic Activities In Nigeria

ABSTRACT

This exploration work is handy in the study of current affectation and profitable conditioning in Nigeria. The inflationary thesis aims at chancing out if there’s any acceptable control of affectation in relation to profitable conditioning in Nigeria.

In this design we bandy the reaches description of term and limitation. We also bandy the description of affectation and the effect of affectation.

The review base in propositions and how monetarists maintain that affectation cause by an increase in plutocrat force it also said that monetarist proposition is rested on the supposition that there’s full employment of coffers and in the classical equation of exchange( Mv- Pt) there’s constant haste of rotation of plutocrat( v) their conclusion is that the arte of affectation can be reduces by controlling of plutocrat force in an frugality.

In recommendation the stability in the general prices position. For case prices giving should be avoided as much as possible. It also recommend that government should moderate the rate of affectation & should be rear of those used to encourage full employment.

Chapter One

Preface

Background

Affectation can be defined as the patient or nonstop increase in the general price position Mr. Thoney Croft former chancellor of the bankroll( minister of finance) focuses defined affectation “ too important plutocrat chasing many goods ” for about three decades now, affectation is a hydro- head problem that’s so delicate to exclude in Nigeria. Infact it has been a content of major debate among economist in Nigeria and away.

Affectation is now a universal miracle on both in the developed and less advanced countries. There’s a rapid-fire and patient rise in the cost of living and inflationary pressure now pose the topmost peril to profitable growth and development. In Nigeria the profitable sector has been worst affected by the scourge of affectation.

On the other hand, some argued and empirically demonstrated that affectation stimulates investment and growth( Keynessa and Osakwe) 19361982) they see affectation as a natural consequence of profitable development and that important price increase are necessary for profitable growth especially in developing countries.

thus, since the real relationship between real affair and affectation is controversial the primary end of this paper is to examine the relationship statistically using recent data in Nigeria.

Bearing in mind the effect of affectation and its recrimination in our frugality, it came necessary to study the exact relationship between affectation and profitable conditioning in Nigeria.

Statement Of The Problem

As stated in the former section, this relationship between affectation and real affair is controversial. The goods of affectation in the frugality is infact unknown while some economist believe that affectation reduces the position of real affair in Nigeria distorts anticipation and so on. Other economists argue that affectation stimulate investment and growth. It’s grounded on this contestation that the study seek to punctuate statistically the relationship between inflationary experience and profitable growth in Nigeria.