CENTRAL BANKING AND MACROECONOMIC UNDERDEVELOPMENT.PART 14F

and decisions of appropriate exchange rate regime finding the actual exchange rate levels which though of course may vary slightly beyond some limits over the course of time.Frankly speaking there is a mismatch of policy between monetary and fiscal policy, tto defeat the overall policy objectives.Precisely the former focuses on almost exclusively on demand management strategy with intent to curb price increases or check mate inflation,whereas the latter in a volatile terrain like Nigeria indulges in fiscal indiscipline and cannot be easily synchronized with its ideal framework of fiscal stance that focuses on cost containment,production promotion target,real sector productivity and mass investment as well as enhancements of job creation opportunities.Unrestrained spending and uncoordinated release of funds under the pretense of economic reconstruction decimated the financial system over the years. The apex bank is invariably quite more complacent with exchange rate demand management approach rather than ensuring egalitarian monetary policy over a given period to alleviate pains of the real sector and its policy shift perenially favours artificial defense of the naira.The challenge of rate and forex market convergence unarguably is the biggest nightmare of successive administrations.