FiscalMonetary Policy and strongEconomicstrong Growth in Nigeria A.pdfVIP

International Journal of Academic Research in Economics and Management Sciences September 2012, Vol. 1, No. 5 ISSN: 2226-3624 Fiscal/Monetary Policy and Economic Growth in Nigeria: A Theoretical Exploration Dr. Abata, Matthew Adeolu Department Of Accounting And Finance, Faculty Of Management Sciences, Lagos State University, Ojo, Lagos, Nigeria Dr. Kehinde, James Sunday Department Of Accounting And Finance, Faculty Of Management Sciences, Lagos State University, Ojo, Lagos, Nigeria Mrs Bolarinwa, Sehilat Abike Department Of Accounting And Finance, Faculty Of Management Sciences, Lagos State University, Ojo, Lagos, Nigeria Abstract This paper assesses how fiscal and monetary policies influence economic growth and development in Nigeria. The paper argues that curbing the fiscal indiscipline of Government will take much more than enshrining fiscal policy rules in our statute books. This is because the statute books are replete with dormant rules and regulation. It notes that there exist a mild long-run equilibrium relationship between economic growth and fiscal policy variables in Nigeria. The paper suggest that for any meaningful progress towards fiscal prudence on the part of Government to occur, some powerful pro-stability stakeholders strong enough to challenge government fiscal recklessness will need to emerge.