An Econometric Analysis of the Nigerian Consumer Price Index

Abstract

The behavior of the consumer price index in Nigeria is examined utilizing quarterly data. The underlying theoretical model utilizes a basic macroeconomic framework augmented to include the impacts of exchange rate changes. Estimation is carried out after the stationarity characteristics of the dependent and independent variables are tested. Separate versions are estimated utilizing narrow and broad definitions of the money supply for Nigeria. OutMofwsarnple simulations are utilized to examine potential impacts associated with different monetary policy stances (011, 055).