Monetary Policy Management and Movement of Agricultural Price in Nigeria

Abstract

Price instability is the most important problem in Nigeria's agricultural sector today. Price fluctuation in the agricultural industry is assumed to be caused by two factors: money supply and exchange rate. This study looked at the influence of monetary policy management on agricultural prices in Nigeria, as well as the influence of money supply on commodity prices. Money supply has a considerable impact on the agricultural prices, according to the Autoregressive Distributed Lag model ARDL, and agricultural prices are not more responsive to swings in money supply than aggregate prices. Furthermore, agricultural prices are unaffected by currency rates. The Central Bank of Nigeria should adopt monetary policies that promote agricultural stable prices while simultaneously lowering inflation rate in the economy, according to the findings.