¹Orenuga, Babatunde, ²Abass, Kehinde Babatunde

¹First Bank of Nigeria Limited, Lagos, Nigeria
²Department of Finance, Babcock University, Ilisan Remo, Ogun State, Nigeria.

DOI : https://doi.org/10.47191/ijsshr/v8-i1-28

Google Scholar Download Pdf
ABSTRACT

The study empirically investigated the relationship between monetary policy and unemployment in Nigeria. After critical review of theoretical and empirical literature, a model was constructed with unemployment as the dependent variable while interest rate and money supply were the independent or explanatory variables. Data used for the study were sourced from the Central Bank of Nigeria. The Augmented Dickey Fuller, Johansen co-integration, and fuller modified ordinary least square methods were used to analyze the data. Findings from the study show that interest rates have a negative and statistically insignificant relationship with interest rates. On the other hand, the money supply has a positive and statistically significant relationship with unemployment. Based on the findings, monetary policy tool is a veritable instrument to achieve the macroeconomic objective of addressing the challenge of unemployment in the country.

KEYWORDS:

Money Supply, Unemployment, Interest Rate, Monetary Polic.

REFERENCES
1) The Netherlands on the European Scale . (2019). Retrieved from a. https://longreads.cbs.nl/european-scale-2019/unemployment/#

2) Alessia, C., Ester, F., & Roland, C. W. (2009). Fiscal Calculus and the Labor Market. MNB Working Paper.

3) Bredino, S. (2024). Maroeconomics: An Introduction. Port Harcourt: Sofiata Publications.

4) Bredino, S. (2024). Monetary Economics: A Concise Text. Port Harcourt: Sofiata Publications.

5) Bredino, S., Faithful, C., & Aguwamba, C. A. (2023). Unemployment and Inflatin in Nigeria: A Vector Error Correction Approach. University of Port Harcourt Journal of Accounting & Business, 9(1), 64-77.

6) Bredino, S., & Fiderikumo P. (2018). Foreign Direct Investment and Economic Growth In Nigeria. Journal of Economics and Business,1(3), 260-267.

7) Clever, G. A. (2007). Modern Macroeconomics. Port Harcourt: Pearl Publishers.

8) Dogrul, H. G., & Soytas, U. (2010). Relationship Between Oil Prices Interest Rate and Unemployment: Evidence from an Emerging Market . Energy Economics, 32, 1523 -1528.

9) Fred, G. (1999). Principles of Economics. Cincinnati: Ohio South-Western College.

10) International Labour Organisation. (2020). Report on Employment in Africa (Re-africa).

11) International Labour Organisation. (2022). Global Employment Trend for Youths 2022: Asia and the Pacific. Retrieved from https://www.ilo.org/wcmsp5/groups/public/---ed_emp/documents/briefingnote/wcms_853325.pdf

12) Jeffrey, P. (2010). Models of Unemployment. In Economics 314 Coursebook.

13) Jhingan , M. L. (2008). Macroeconomic Theory. Delhi: Vrinda Publications.

14) Kalu, I. E. (2001). Issues in Problems and Policies of Development. Lagos: Techno Consults Ltd.

15) Keynes, J. (1936). General Theory of Employment, Interest and Money. London: Harcourt.

16) Mouhammed, A. (2010). Unemplyment & the Entrepreneur. International Journal of Economics and Research, Vol. 1, 1 -14.

17) Neva, R. G., Julie, A. N., Frank, A., & Thomas, W. (2006). Theories of Unemployment. Global Development and Environment Instituions.

18) Pigou, A. C. (1933). The Theory of Unemployment. Routledge.

19) Robert, E. H. (1980). Employment Fluctuations and Wage Rigidities. National Bureau of Economic Research.

20) Solow, R. (1980). On theories of Unemployment. The American Economic Review.

Volume 08 Issue 01 January 2025