Role of Fiscal-Monetary Policy Coordination in Managing Energy Price Shocks in Oil-Exporting Small-Open Economy

This study examines the optimal coordinated fiscal-monetary policy mix for mitigating energy price shocks using a Bayesian Structural Vector Autoregression inferential model. The results show that a mix of contractionary fiscal and monetary policies is the most effective tool for mitigating the energy shocks. Therefore, maintaining macroeconomic stability requires achieving fiscal discipline and implementing coordinated policies to restore output growth and achieve price stability in Nigeria.