Effectiveness Of Monetary Policy In Controlling Inflation

INTRODUCTIONInflation has become a significant problem for Africa and Nigeria in particular during the past twenty years. Since the first oil shock in the mid-1970s, African inflation rates have averaged more than 15 percent a year. For Sub-Saharan Africa, the average inflation rate has been closer to 20 percent a year. A few Sub-Saharan countries have even experienced inflation rates of 50 or even 100 percent a year (Batini, 2004).The emergence of substantial inflation in Africa has led to widespread debate about its causes. Many economists that favour traditional adjustment strategies conten…