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Error Correction Modelling of Monetary Policy Instruments Behavior and Inflation Dynamics in Nigeria

Monetary policy measures are fundamental macroeconomic plots towards inflation control in an ecosystem. Thus, the paper investigated the impact of monetary policy instruments and inflation dynamics in Nigeria from 1991 -2024. Monetary policy instruments captured as independent variables are, money supply, exchange rate, monetary policy rate, and treasury bills rate, the dependent variable is the consumer price index as a proxy for inflation dynamics. The ECM approach was specified and estimated after pre-estimation tests were conducted. The ECM result revealed varying effects of monetary polic…

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