Federal finance and statistics / Central Bank of Nigeria

Monetary Policy Options in the Context of Secular Stagnation and Financial Uncertainty in Nigeria

This paper examined the phenomenon of secular stagnation in the face of financial uncertainty, with a view to determining the most appropriate monetary policy instrument(s) that could be employed to quicken the pace of output gap recovery in Nigeria. A threshold regime-switching vector autoregressive (VAR) technique was applied on quarterly data for the 2000Q1-2018Q4 period. The response of the output gap to shocks to the various monetary policy variables and the relative contribution | Keywords: : Monetary policy, Financial uncertainty, Output gap, Threshold regime-switching VAR, Secular stag…