Abstract
This study empirically explored the impact of monetary policy instruments on the economic well-being of Nigerians from the period 1981 to 2020. Per capita income is used in the study as a stand-in for well-being. It focuses on the relationship between the money supply, currency in circulation, and loans to the private sector and the economic well-being of Nigerian citizens. The unit root test was used to determine the degree of stationarity, and the results indicate that all of the variables were stationary following the initial difference. As a consequence, the variables had to be approximated using the Johensen Cointegration test. The outcome demonstrates that there is neither a short-term dynamics link nor a long-term equilibrium relationship between the independent variables of prime lending rate (PLR), money supply (MNSt), currency in circulation (CIC), credit to the private sector (CPS), and per capita income (PCI) and the dependent variables of PCI. This does not necessarily mean that the population's per capita income in Nigeria is unaffected by monetary policy decisions made throughout time. Rather it points to the fact that other variables are important in the dynamics of per capita income which are not included in the model. So, the study recommends among others that the government provide the needed infrastructural development to enhance the performance of the real sector, promote economic growth and improve economic well-being in Nigeria.
Published Version
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