Tag Archives: Prices

Effect of Monetary Policy on Prices and Output in Nigeria (Published)

The effect of monetary policy on prices and output in any economy cannot be overlooked. This is germane given the implications on various macroeconomic outcomes. In doing this, the Fully Modified Ordinary Least Squares (FMOLS) method was deployed base on the preliminary findings to test the relationship for Nigeria. Findings revealed that money supply and exchange rate exhibit significant effect on prices and output, while monetary policy rate does not. Also, technological innovation and labour force significantly impacted output while gross fixed capital formation did not, Base on the findings, it is recommended that the central bank implement policies that will ease access to forex, stabilize the exchange rate and lessen the hassles for capital goods import, while regulating money supply and monetary policy rate to stabilize the economy.

Citation: Eko E.O.,and Orlu R.N. (2022) Effect of Monetary Policy on Prices and Output in Nigeria, International Journal of Developing and Emerging Economies, Vol.10, No.3, pp.1-13

Keywords: Monetary Policy, Output, Prices

Accounting for Price Level Changes: Prospects and Problems (Published)

Prices do not remain constant over a period of time. They tend to change due to various economic, social or political factors. Changes in the price levels cause two types of economic conditions, inflation and deflation. Inflation may be defined as a period of general increase in the prices of factors of production whereas deflation may fall in the general price level. These changes in the price levels lead to inaccurate presentation of financial statements which otherwise are prepared to present a true and fair view of the company’s financial health. This is so because the financial statements are prepared on historical costs on the assumption that the unit of account. Accounting for price level changes is a system of maintaining accounts in which all items in financial statements are recorded at current values. This system of accounting ascertains profit or loss and presents financial position of the business on the basis of current prices. Accounting for price level changes is also called inflation accounting.

Keywords: Deflation, Equity, Inflation, Price level changes, Prices