Interaction effect of fiscal and monetary policies on the level of inflation in Nigeria

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Research reveals inflation driven by monetary policy in Nigeria, highlighting fiscal coordination challenges.

Inflation in Nigeria is significantly influenced by monetary policy factors like interest rate and money supply, affecting purchasing power.
Finding indicates that while monetary policy affects inflation, fiscal spending does not have a long-term impact on inflation rates.
Using an ARDL model, the study incorporates key variables including GDP, government expenditure, and fiscal deficits for comprehensive analysis.
The lack of synchronization between fiscal and monetary policies is a critical driver of inflation volatility in Nigeria.

Emmanuel Imuede Oyasor (2025) studied this question.

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