Effect of Monetary Policy on Health Outcome in Nigeria (1980–2022)

The study investigates the effect of monetary policy decisions on health outcome/fertility rate in Nigeria over the period 1980 to 2022. The specific objectives are to examine the relationship between monetary policy rate (MPR), treasury bills volume (TBV), cash reserve ratio of banks (CRR) and liquidity ratio of banks (LQR) and fertility rate (FERR). The cointegration and Error Correction Model (ECM) econometric techniques were employed in the analysis of data, and the results revealed that in the short run, only liquidity ratio of banks (LQR) has significant negative relationship with fertility rate. In the long run result, it was found that none of the monetary policy variables has any significant effect on fertility rate (FERR) in Nigeria. The study recommends among others that, the government and indeed the health sector policy management and policy makers need to constantly brainstorm and harness appropriate modern strategy that will effectively link the banking sector with the health sector for prompt access to cash by patients. By so doing, liquidity ratio of banks will have the much needed positive impact on health outcome/fertility rate in the Nigeria. Also, monetary policy decision regarding health outcome should be compactible and align with family policy, and well-coordinated; because, how different policy elements fit together and link to a broader social system may be more important than the overall level of policy support for households fertility rate.