SIGNAL EXTRACTION FROM THE BOND MARKET AND INFLATION FORECASTING IN NIGERIA
Sold By: Joe Project Store | Item Type: Project Material | Report this? | Attributes: 65 pages | 1-5 chapters | Amount: ₦5,000 | Marked useful: 4,389 times
INSTANT PROJECT MATERIAL DOWNLOADAbstract
There is the global recognition of the importance of expectations in the conduct of monetary policy, which can be attributed to the growth of financial markets, and the fact that economic fundamentals are driven, by expectations of the market agents. In an ever changing economic and financial environment, the CBN would require all the information it can get to respond to these changes in accordance with its policy objectives. Some of such information can be sourced from the bond market. The study seeks to examine the extent to which the information on private sector expectations of inflation which is contained in the yield curve that can improve inflation forecast. This would consequently increase the information set available to the CBN to forecast future inflation. The study is predicated on the premises that are enunciated in the Expectations Theory of Term Structure of Interest Rates. The theory suggests that interest rates and prices are driven by expectations.VAR model was estimated using quarterly data on security prices, inflation, MPR, and exchange rate for the period of 2006-2013. The study finds that: (i) there is information about private sector expectation embedded in the yield curves (ii) the proxy for expectation (treasury bills with 90 days maturity) has a significant effect on inflation in Nigeria (iii) the yield spread can indeed improve inflation forecast in Nigeria. The study concludes that the information embedded in the prices of securities can improve inflation forecast and monetary policy in Nigeria. From these findings, the study recommends that CBN should increase effectiveness and efficiency of monetary policy through the inclusion of the yield curve in modeling inflation in Nigeria. Furthermore, government in collaboration with the Central Bank of Nigeria should take effective measures to improve liquidity in the bond market which often disrupt the information signals found in security prices.
This material content is developed to serve as a GUIDE for students to conduct academic research
Find What You Want By Category:
DOWNLOAD THIS PROJECT MATERIAL NOW!
Advertise Here
For advertisement, call 08168958821
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
EFFECT OF INFLATION ON SOCIOECONOMIC STATUS OF HOUSEHOLD IN NIGERIA
CHAPTER ONE INTRODUCTION Background of the Study Globally, high inflation continues to be a significant unresolved matter. It is a prominent concer...More »
Item Type: Project Material | 54 pages | 968 engagements |
- 2.
AN ASSESSMENT INTO THE EFFECT OF FEDERAL STUDENT LOAN DEFAULT RATES: IMPLICATION FOR THE NIGERIAN EC...
CHAPTER ONE INTRODUCTION Background of the study The higher education system in Nigeria has seen significant growth in recent decades, with a risin...More »
Item Type: Project Material | 54 pages | 829 engagements |
- 3.
AN EXAMINATION OF THE CAUSES AND EFFECTS OF ECONOMIC MELTDOWN IN NIGERIA (AN ASSESSMENT OF TINUBU AD...
CHAPTER ONE INTRODUCTION Background of the Study Economic meltdown, sometimes known as an economic crisis, can be described as a state of economic slo...More »
Item Type: Project Material | 54 pages | 1,288 engagements |
- 4.
AN EXAMINATION OF THE EFFECTS OF ECONOMIC STAGNATION ON NIGERIA ECONOMIC GROWTH AND DEVELOPMENT (A C...
CHAPTER ONE INTRODUCTION Background of the Study It is well acknowledged by all citizens that Nigeria and other countries are currently experiencing a...More »
Item Type: Project Material | 54 pages | 1,016 engagements |
- 5.
AN IN-DEPTH INVESTIGATION OF THE IMPLICATIONS OF ECONOMIC STAGNATION ON THE LIVELIHOOD OF RURAL DWEL...
AN IN DEPTH INVESTIGATION OF THE IMPLICATIONS OF ECONOMIC STAGNATION ON THE LIVELIHOOD OF RURAL DWELLERS CHAPTER ONE INTRODUCTION Background of the St...More »
Item Type: Project Material | 54 pages | 968 engagements |
- 6.
AN IN-DEPTH STUDY OF WIDESPREAD HARDSHIP IN NIGERIA(AN EXPERIENCE UNDER TINUBU ADMINISTRATION)
AN IN DEPTH STUDY OF WIDESPREAD HARDSHIP IN NIGERIA(AN EXPERIENCE UNDER TINUBU ADMINISTRATION) CHAPTER ONE INTRODUCTION Background of the Study The...More »
Item Type: Project Material | 54 pages | 1,097 engagements |