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LequteMan
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Nigeria's economy is not in recession but the 'misery index' is rising, according to Akpan Ekpo, a professor of economics and Director General, West African Institute for Financial and Economic Management (WAIFEM), in an interview with the Vanguard.
"The economy is not in recession for now. Government data show that the economy is growing at about 6 per cent and inflation is single-digit. The relevant macroeconomic fundamentals are moving in the right direction for now. For how long remains a challenge. The unemployment rate of almost 30 per cent makes mockery of macro-economic stability. Though the economy is not in a recession, the “misery index” has been rising. General economic performance is poor.
"The CBN is using monetary policy to address the seeming economic crisis in the country as a result of dwindling oil prices. The problem is that the measures appear too many and are to be implemented at the same time. The fiscal side of the story though not under the purview of the CBN is not clear.
"In this scenario, we need proper co-ordination of both monetary and fiscal policy. The measures portray a panic situation in an environment of increased risks and uncertainties. In an economy that relies heavily on neo-liberal economic policy, the CBN cannot do otherwise.
"The measures are not only short-term but would bring untold hardship to almost all sectors of the economy. We are told that there are long-term gains. How long is the long-run! In the long-run, we are all dead though not all at the same time.
"Reserves are dwindling due to declining oil revenues, elections are around the corner and the economy is heavily import-dependent. Hence, the CBN increases the Marginal Policy Rate (MPR) in anticipation of inflationary pressures. The Excess Crude Account (ECA) is no longer there because if it was available, the economy would rely on it in the short-term. These measures to bail a dependent primitive capitalist economy may have short-term positive effects but would not change the structure of the economy," he added.
#Nigeria #Vanguard #CBN
"The economy is not in recession for now. Government data show that the economy is growing at about 6 per cent and inflation is single-digit. The relevant macroeconomic fundamentals are moving in the right direction for now. For how long remains a challenge. The unemployment rate of almost 30 per cent makes mockery of macro-economic stability. Though the economy is not in a recession, the “misery index” has been rising. General economic performance is poor.
"The CBN is using monetary policy to address the seeming economic crisis in the country as a result of dwindling oil prices. The problem is that the measures appear too many and are to be implemented at the same time. The fiscal side of the story though not under the purview of the CBN is not clear.
"In this scenario, we need proper co-ordination of both monetary and fiscal policy. The measures portray a panic situation in an environment of increased risks and uncertainties. In an economy that relies heavily on neo-liberal economic policy, the CBN cannot do otherwise.
"The measures are not only short-term but would bring untold hardship to almost all sectors of the economy. We are told that there are long-term gains. How long is the long-run! In the long-run, we are all dead though not all at the same time.
"Reserves are dwindling due to declining oil revenues, elections are around the corner and the economy is heavily import-dependent. Hence, the CBN increases the Marginal Policy Rate (MPR) in anticipation of inflationary pressures. The Excess Crude Account (ECA) is no longer there because if it was available, the economy would rely on it in the short-term. These measures to bail a dependent primitive capitalist economy may have short-term positive effects but would not change the structure of the economy," he added.
#Nigeria #Vanguard #CBN
