effects of phillips curve around the nigerian economy



1 . one particular Background of the Study

In Nigeria, there have been complications in reaching macroeconomics targets. The problem inherent in reaching the macroeconomics objectives are pumpiing, unemployment, low investment, lower income, low foreign reserve (i. e. shortfall balance of trade). After the independence of Nigeria in 1960, Culture was the livewire of Nigerian economy, Nigeria being an arcadian nation aren't de-emphasize the value of agriculture not only to her economy nevertheless also to general wellness of the people. The basic importance of agriculture in Nigeria incorporate but not limited to provision of food for any, provides career for about 70 percent of the inhabitants, source of along with national profits, generate cost savings both exterior and interior revenue and the like. Agriculture which was the livewire of Nigerian economy has endured from mismanagement, inconsistent and poorly conceives government procedures, neglect as well as the lack of standard infrastructure. Nigerian is no longer a significant exporter of cocoa, groundnuts, rubber and palm oil. The agriculture sector failed in meeting the adequacy in foreign exchange arrange due to excessive imports and prevalence of oil export which generated massive joblessness in Nigeria. The olive oil boom in the 1970s led Nigeria to ignoring it is agricultural products and highly dependent on oil. Due to the prevalence of oil, the other exchange reduced drastically consequently leading to the us government earning almost all of its cash flow from essential oil export. In light of the high expansionary open public sector financial policies in 2001, the government sought approaches to head of higher inflation therefore leading to the implementation of stronger financial policies. The decline in agricultural export, decline in industrialization, reliance on oil happen to be causes intended for slow financial growth in Nigeria. In the research upon agriculture and oil increase, it expose that lack of employment and inflation are the two major pests eating deep into the macro economics aims. " Inflation is the general increase in prices of goods and services within an economy” (CBN 2008), inflation is also a fiscal parasites caused by high demand pertaining to goods pertaining to supply thereby raising to prices with the few products, weak financial policy therefore inflation sucks the economy of Nigeria since it reduces the significance of money. Unemployment on the other hand could be defined as the economic situation when people are having simply no work or are seeking for energetic work to involve themselves in. This kind of economic vermine could be brought on by high level of literacy, low investment, fragile monetary plan and fiscal insurance plan, low foreign direct expense (Batini, 2004). Over the years, the challenge of inflation and joblessness has been contingency. These two economic problems impact the growth of any economy in the world. Some students see all of them as so correlated or related that the occurrence of one variable affects or minimizes the other. This triggered Phillips curve 1 . 2Statement of the Problem

According to Phillips, there is a negative relationship among inflation and unemployment, this kind of relationship is referred to as ‘Phillips Curve'. This analyze shall examine the ideas of Phillips Curve if truly we have a negative relationship between joblessness and pumpiing in Nigeria. This examine shall likewise examine the shifting of Phillips Contour as postulated by Keynes. According to the study by Keynes ‘There is bound to be shock in an economy whereby one of unemployment and inflation would be affected without necessarily influencing the different.





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Supply: CBN Statistical Bulletin

Facts from Nigeria shows the partnership between joblessness and pumpiing rate by 2000 -- 2009.

From the above, it really is clearly found there appears...

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Central Bank of Nigeria (2012a), Origin and Development of Inflationary Trend in African Countries (Impact about

Their Growth)”

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