THE EFFECT OF MONETARY POLICY ON AGRICULTUTRAL OUTPUT IN NIGERIA
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ABSTRACT
This research work is an empirical effort attempted to re-evaluate the impact of monetary policy on agricultural output with annual secondary data from 1980 to 2006 sourced from Central Bank of Nigeria Statistical Bulletin. The ordinary least square techniques was employed for its estimation. The result shows that the independent variables interest rate, cash reserve ratio and deposit money bank credit to agriculture have significant impact on the Agricultural sector in Nigeria which means that monetary policy instruments is relevant to agricultural. From the study the government is advised to seek a proper role for monetary policy in promoting strong and sustainable growth in a stable macroeconomic environment in Nigeria through monetary authority also the government should advocate for a moderate interest rate which is needed for a sustainable economic growth and development.
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