International Journal of Research and Innovation in Social Science (IJRISS)
Error Correction Modelling of Monetary Policy Instruments Behavior and Inflation Dynamics in Nigeria
Published December 13, 2025 • Vol. 9, Issue 11, pp. 5189–5199Open Access
DOI: 10.47772/IJRISS.2025.91100411
Abstract
Monetary policy measures are fundamental macroeconomic plots towards inflation control in an ecosystem. Thus, the paper investigated the impact of monetary policy instruments and inflation dynamics in Nigeria from 1991 -2024. Monetary policy instruments captured as independent variables are, money supply, exchange rate, monetary policy rate, and treasury bills rate, the dependent variable is the consumer price index as a proxy for inflation dynamics. The ECM approach was specified and estimated after pre-estimation tests were conducted. The ECM result revealed varying effects of monetary policy tools on inflation dynamics, as all shows negative impacts on inflation. Some post diagnostics checks were performed to determine the reliability and dependability of the result. On the strength of the findings, the study recommends among others for conscious regulation of money supply and other rates in the ecosystem.
Keywords: treasury bills, consumer price index, exchange rate
| Journal | International Journal of Research and Innovation in Social Science (IJRISS) |
|---|---|
| ISSN | 2454-6186 |
| Volume / Issue | Volume 9, Issue 11 |
| Pages | 5189–5199 |
| Publication date | December 13, 2025 |
| DOI | 10.47772/IJRISS.2025.91100411 |
| Publisher | RSIS International |
| License | Open Access |
How to cite this article
Sefiyat Ahouiza Owuri, & Iortyer Aondover Dominic (2025). Error Correction Modelling of Monetary Policy Instruments Behavior and Inflation Dynamics in Nigeria. International Journal of Research and Innovation in Social Science (IJRISS), 9(11), 5189-5199. https://doi.org/10.47772/IJRISS.2025.91100411
BibTeX
@article{Sefiyat2025,
title = {Error Correction Modelling of Monetary Policy Instruments Behavior and Inflation Dynamics in Nigeria},
author = {Sefiyat Ahouiza Owuri and Iortyer Aondover Dominic},
journal = {International Journal of Research and Innovation in Social Science (IJRISS)},
volume = {9},
number = {11},
pages = {5189--5199},
year = {2025},
doi = {10.47772/IJRISS.2025.91100411},
publisher = {RSIS International}
}