ACHIEVING SUSTAINABLE NATIONAL ECONOMIC DEVELOPMENT USING GOVERNMENT MONETARY POLICY

Abstract The study investigated how the Nigerian government could achieve a sustainable economic growth using the tool of monetary policy. The study examined how monetary policy rate, money supply, and exchange rate could influence sustainable economic growth in Nigeria measured by GDP per capita. Secondary data from 1990 till 2022 and sourced from the CBN statistical bulletin was used for the study and was estimated using the Vector Error Correction Model. Findings revealed that all the independent variables had a short run speed of adjustment to move into the next period and impact the dependent variable positively and significantly. The study recommended that the central bank should adopt monetary easing strategies that would make the monetary policy rate (MPR) become a single digit rate. Double digit MPR constrains bank lending which also constrains economic growth.