Causes and drivers of inflation in Nigeria: A comprehensive review
Department of Agricultural Economics, Faculty of Agriculture, University of Abuja, PMB 117, Abuja, Federal Capital Territory, Nigeria.
Review Article
World Journal of Advanced Research and Reviews, 2023, 19(01), 779–788
Article DOI: 10.30574/wjarr.2023.19.1.1376
Publication history:
Received on 31 May 2023; revised on 11 July 2023; accepted on 13 July 2023
Abstract:
This review article provides a comprehensive analysis of the causes and drivers of inflation in Nigeria. Inflation is still a chronic problem for the Nigerian economy, and understanding the fundamental causes is critical for successful policy formation and economic stability. The review investigates macroeconomic issues such as monetary policy, fiscal policy, exchange rates, and international trade dynamics in order to determine their influence on Nigerian inflation. It also investigates the link between these variables and inflation expectations and persistence. The evaluation looks at structural variables that contribute to inflation, such as supply-side shocks like food and energy price variations. Institutional problems such as corruption, poor governance, and policy implementation difficulties are investigated for their impact on inflationary pressures. The efficacy of regulatory frameworks, the stability of the financial industry, and the actions of central banks are all assessed. The assessment underlines the interaction and complexity of these elements, emphasizing the importance of a comprehensive strategy for addressing inflation in Nigeria.
Keywords:
Inflation; Monetary Policy; Fiscal Policy; Exchange Policy; International Trade Dynamics
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Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0