Cognitivereason:


abeg go and tear all ur school certificate if u have any..u dont deserve it..

inflation simply means too much money is flowing in an economy...

too much money flowing in an economy where there are less things to buy means that money losses value and the things to be bought increase in price
in order to cushion this central banks all over the world raise interest rate in order to discourage People from borrowing money to be circulated into an economy that already has an excess of it..

but Trust Nairalanders..they have no single clue of how economies works hence they are wailing even in things that glaring to undertsand

just stop this thing you're disturbing this page with. you're leaving the most important things like insecurity and be defining inflation as this cause of this. Where is the too much money you're claiming that it is in circulation? ,or am I not in Nigeria again. Blame any other cause but too much money in the circulation....

The dollar is heading to 700naira. APC regime has totally murdered this country. I wonder what touts are still supporting this afternoon APC, by the end of the year 1 dollar will be equivalent to 1000 naira. Poverty on top of poverty.

Zico5:

You don't know what u are saying. Tell me one economic growth the guy has achieved since he assumed the position of CBN governor. Tell me one economic policy this country is enjoying currently under him. Dollar is now 630 naira at the black market. I may not be an economist but I know what's going on in this country.

You get time to dey reply that one

Cognitivereason:
inflation simply means too much money is flowing in an economy...

too much money flowing in an economy where there are less things to buy means that money losses value and the things to be bought increase in price
in order to cushion this central banks all over the world raise interest rate in order to discourage People from borrowing money to be circulated into an economy that already has an excess of it..

but Trust Nairalanders..they have no single clue of how economies works hence they are wailing even in things that glaring to understand

Where is the money?
And the other day someone spoke for tinubu to make credit facilities for buy cars for all nigeria. Apc i try .

just2endowed:


Hope interest rate on savings and tb rate will increase because the 3% is too minimal

Thank you, you just spoke my mind. If this does not happen , than we are swimming with sharks.

brightalo1010:
I'm not supporting Apc but take a look at other countries like Ghana interest rate, inflation debt to gdp e.t.c they've even gone to IMF for bail out.

Whoever that is coming to rule Nigeria will still borrow, inflation will increase, debt to gdp will increase nothing is ever going to remain the same even exchange rate, the person will blame previous government forever, there'll be an out cry, many that supported him today will come and regret.

Nigeria probably need a review of the system unless that what written against this government will continue against whoever that is going to rule next. This I bet you.


Remember this in few years to come.

What palliative is in place, this government nonchalant attitudes contribute more

Cognitivereason:


inflation simply means too much money is flowing in an economy...

too much money flowing in an economy where there are less things to buy means that money losses value and the things to be bought increase in price
in order to cushion this central banks all over the world raise interest rate in order to discourage People from borrowing money to be circulated into an economy that already has an excess of it..

but Trust Nairalanders..they have no single clue of how economies works hence they are wailing even in things that glaring to understand

Inflation simply means, shit!!!
What are are trying to say, there is nothing to buy who toldyou? And people are hungry no food to eat, where is the money by the way. Why are the farmers not in their farms? insecurities, killing , loss of life and properties
No farming, are going on farm in the north , high price of less produced farm product with no purchasing power to buy. No employment for the youth.
Do you know that our agro product are now imported form Cotonu by southern Nigeria !
Treasure bill and bond and financial market still remain shity with low interest rate of 3% interest and cbn to the bank 14% . The question is how many interest rate should we have in how finiacial institution and market?

Your government borrowed form China where are the Money,what did they do with it?

JoshTim:

It cannot. Increasing interest on savings and treasury bill will nullify the interest rate increase.

So therefore, your politicians go look for investors (china) borrow in whatever name they can think off, with whatever interest rate for than self needs, than Cbn does the dirty job by pushing the interest rate on the commercial bank, who in turn pushes to the big and small corporate bussiness , who bear the burden.

iwaeda:


https://punchng.com/cbn-raises-interest-rate-to-14/

Lol... Anyways na @vulturegrills e go affect pass na him dey use loan import vultures...

franugo:
Hmm, interest rates for loans will increase again

Interest rates for Savings may also increase marginally.
They also want more people to lend to the govt at the Money market.
But Nigeria operates a cash-based economy and there is just too much raw liquidity in the system.
Ask the Gov why 13% last month yielded little results

I no understand all this fuss.... interest rate has been 14% before now.....why una dey carry am for head this time....haba

The right thing to do, it will help reduces inflation and encourage saving.. it is like choosing the lesser of two evils

Oyiboman69:
just stop this thing you're disturbing this page with. you're leaving the most important things like insecurity and be defining inflation as this cause of this. Where is the too much money you're claiming that it is in circulation? ,or am I not in Nigeria again. Blame any other cause but too much money in the circulation....

the thread isnt about insecurity....
insecurity isnt the only cause of inflation..

MedicH:


You are very funny. A poor rat is justifying his oppressors for imposing harsh economic realities upon him. Your focus is on contractionary fiscal policies, the one govt chose to cushion inflation which only affects you and not the one that affects government. If there are few goods to purchase, why is government not chasing services to create discretionary sending. Why is government creating more services due to stuffs like road constructions, equipping schools, hospitals and stuffs to put services on ground which will extract the money in circulation but na the one that affects u they go like.

ode

ignorance is a disease,...you are not wiser than a central bank..

what ever point you listed is done in every country of the world when their analysis shows it not enough..they issue out monetary policies ..
it not Job so you will never understand..

PHOTSEE:


Inflation simply means, shit!!!
What are are trying to say, there is nothing to buy who toldyou? And people are hungry no food to eat, where is the money by the way. Why are the farmers not in their farms? insecurities, killing , loss of life and properties
No farming, are going on farm in the north , high price of less produced farm product with no purchasing power to buy. No employment for the youth.
Do you know that our agro product are now imported form Cotonu by southern Nigeria !
Treasure bill and bond and financial market still remain shity with low interest rate of 3% interest and cbn to the bank 14% . The question is how many interest rate should we have in how finiacial institution and market?

Your government borrowed form China where are the Money,what did they do with it?

money borrowed from china were used for lagos - ibadan railline, abuja - kaduna railline, abuja - keffi - lafia - makurdi expressway, abuja - metrolline.. all these project are either completed or 90% completed..

dont derail the thread..

it wont sound logical to you.. but inflation means there is too much money in circulation...you can simply ask for help to understand using google rather than advertise ur ignorance

Oyiboman69:

In your learned opinion... is this the only cause of inflation?.cos it seems you're far from reality....

everyone cannot be dull and cynical..it why I decided to comment on the thread...

if there are other causes of inflation like insecurity ...oga is it the CBN's job to now tackle it..why are u sounding so daft and uneducated.

no one is arguing if there are no other causes and ways to tackle it..the security forces have their path to play, those handling power, manufacturing etc...the same way THE CBN AND OTHER COMMERCIAL BANKS HAS THEIR OWN PATH TO PLAY!! and the CBN's role as the regulatory body for financial transactions and commercial banks has to issue out it own monetary policy which is cushioning money leaves the bank!!
..
if you believe that there are other causes like insecurity..then go and complain to the service chiefs not Emiefele

alwayspositive8:
You are right with yoour definition. But the fact remains that is there really an excess money in circulation. I think what emefiele needs to focus on is the other side of inflation " few goods". His policy should increase production and not stiffens in.

this particular policy doesnt necessary stiffen production..there is already excess money that can pay for what is produce..

it primarily to reduce that excess money..
the other way to tackle it is to boost production...but the result doesnt happen so quick

there are also policies that drives production especially in agriculture (anchors borrowers program is an example)but most times these things go out of balance..therefore the CBN has to tackle it from both sides.. it a global practice not a nigerian thing

Cognitivereason:


everyone cannot be dull and cynical..it why I decided to comment on the thread...

if there are other causes of inflation like insecurity ...oga is it the CBN's job to now tackle it..why are u sounding so daft and uneducated.

no one is arguing if there are no other causes and ways to tackle it..the security forces have their path to play, those handling power, manufacturing etc...the same way THE CBN AND OTHER COMMERCIAL BANKS HAS THEIR OWN PATH TO PLAY!! and the CBN's role as the regulatory body for financial transactions and commercial banks has to issue out it own monetary policy which is cushioning money leaves the bank!!
..
if you believe that there are other causes like insecurity..then go and complain to the service chiefs not Emiefele

and you didn't see that the masses are at the receiving end....
What about their past policies,who feel the effect?.
If you know you lack social decorum and moral upbringing, stop quoting and insulting yourself....
Akpa kill you....

Cognitivereason:


money borrowed from china were used for lagos - ibadan railline, abuja - kaduna railline, abuja - keffi - lafia - makurdi expressway, abuja - metrolline.. all these project are either completed or 90% completed..

dont derail the thread..

it wont sound logical to you.. but inflation means there is too much money in circulation...you can simply ask for help to understand using google rather than advertise ur ignorance

And you want me to believe these, am l not in Nigeria again. Stuff your nonsense to yourself

VeeVeeMyLuv:

Yes in a "normal" country!
But mehn Naija case is remarkably damn different!
If there's plenty money in circulation that calls for rate hike as an interventionary measure to stem the inflationary tide why then are majority of the citizinery complaining of severe hardship arising from a lack of money?

I think this inflation is fueled by devaluation of the local currency, lack of sincerity of purpose and lack of transparency of the government, corruption in high & low places, govt backed insecurity.

this is very true..

but you should note that devaluing the naira is as a result of insufficient forex coming in..

if our foreign reserves run dry...we will become another sri lanka... sri lanka situation was so worse that the country had to ban the importation of fuel simply because they had no forex to buy..

Nigeria cannot afford to be in such situation..
so the central bank when ever it reads that there is a significant drop in forex inflow...the most effective way to pump back more forex is to devalue the naira.. there is no plan B ..if the CBN doesnt take such action and the reserves runs dry..we are all doom..

a popular presidential aspirant called Kingsley Moghalu who worked for the CBN years ago has always argued that the CBN needs to further devalue the currency...people thought he was mad..you want to argue with a Harvard graduate?..insufficient forex is one of the issues marketers face ..that is one of the reason petroleum product are scarce and even expensive because they have to run to black market whose rate are high to import fuel

https://www.premiumtimesng.com/news/top-news/485602-why-naira-crisis-is-likely-to-get-worse-moghalu.html

Cognitivereason:


the thread isnt about insecurity....
insecurity isnt the only cause of inflation..

but you claimed that the excess money in circulation is the sole cause of inflation, according to your posted definition.

How long will you people continue to defend the incompetence and profligacy of this administration....

Oyiboman69:
but you claimed that the excess money in circulation is the sole cause of inflation, according to your posted definition.

How long will you people continue to defend the incompetence and profligacy of this administration....

i didnt say it is the cause of inflation..

English is not hard to understand
I said inflation simply means excess money in circulation in an economy..

meaning that once you hear anything inflation..that is what it means..

now inflation is caused by many things..

insecurity, lack of power so manufacturers cant produce optimally etc..

but the CBN is not incharge of insecurity or electricity so it has no business there...
what the CBN is charge of is commercial banks ...so they issue out monetary policies to tackle the issue as that is what is within their power..

if there are other causes ...like the two I mentioned causing inflation then dont complain to CBN...go and shout at the minister of power and service chiefs

emiefele has done what he has to do within his power and control

Oyiboman69:
and you didn't see that the masses are at the receiving end....
What about their past policies,who feel the effect?.
If you know you lack social decorum and moral upbringing, stop quoting and insulting yourself....
Akpa kill you....

if you know u have no clue about a particular issue ...dont ever quote me to argue what you cannot finish..

if those policies were not there Nigeria would have been Sri lanka...
The CBN devalued naira so much2015.. you all wailed out of ignorance.. you didnt know what CBN was preventing..

Sri Lanka was still sluggishly keeping it rate when their government knew they were seriously running out of forex..Google is ur friend..One litre of PMS is like gold in that country...they got to a point they had to ban fuel because their reserves had run dry ..no dollars to import it

the same things happened in Venezuela and Zimbabwe ..it got worse to the point that they introduced several new currencies which later lost value..

even ghana had witnessed something similar that they and to dump their old currencies in 2007 and introduce a new one..

Nigeria is still maintaining it own currency since introduction..although it is losing value like most countries..but CBN has to do everything to adjust to harsh realities..you will not understand..
spend time reading books and like I said...dont every comment on something you have no clue about

princeade86:
not everything sir because salary remain the same.

It will increase too.....

Kosoco:
It will increase too.....

by when

Cognitivereason:


if you know u have no clue about a particular issue ...dont ever quote me to argue what you cannot finish..

if those policies were not there Nigeria would have been Sri lanka...
The CBN devalued naira so much2015.. you all wailed out of ignorance.. you didnt know what CBN was preventing..

Sri Lanka was still sluggishly keeping it rate when their government knew they were seriously running out of forex..Google is ur friend..One litre of PMS is like gold in that country...they got to a point they had to ban fuel because their reserves had run dry ..no dollars to import it

the same things happened in Venezuela and Zimbabwe ..it got worse to the point that they introduced several new currencies which later lost value..

even ghana had witnessed something similar that they and to dump their old currencies in 2007 and introduce a new one..

Nigeria is still maintaining it own currency since introduction..although it is losing value like most countries..but CBN has to do everything to adjust to harsh realities..you will not understand..
spend time reading books and like I said...dont every comment on something you have no clue about

after seven years and counting, you're Supporting their policies. I hope you're going going to equate your natural resources, standard of living, corruption to sri Lanka?.
By comparing Nigeria to Zimbabwe and sri Lanka just gave you away... I know where your support lies....

Oyiboman69:
after seven years and counting, you're Supporting their policies. I hope you're going going to equate your natural resources, standard of living, corruption to sri Lanka?.
By comparing Nigeria to Zimbabwe and sri Lanka just gave you away... I know where your support lies....

lol..
you are very funny..what makes you think Nigeria shouldnt be compared with venezuela and sri lanka..

besides who compared resources u are so unstable in ur reasoning...

I am relating the policies these countries took..
inshort the economy of Nigeria, Sri Lanka and venezuela are not entirely different.. they are all rich in hydrocarbon and ofcourse oil export accounts for over 90% of all forex inflow..more than 60% revenue is gotten from oil..this is the same in all three..so what makes it different...they are all highly corrupt, were all wealthy during the 1980s in the early era of oil

the reason why Sri Lanka and Venezuela failed was because their central banks were not allowed to make economic policies autonomously..everything was politically oriented to meet the demands of their masses...until they ran out of forex everything cast..

this is different in Nigeria...look this things are all on the net, youtube will do justice to it..

your simple problem is ignorance..

I am not supporting any government...i comment on issues based on facts not emotions and prejudice..

I even wants Obi to lead next..so that Nigerians can understand that these things are not magic.. How want to see how he will fix ASUU strike, beat inflation to 0%, and provide 24/7 power most importantly let see how he will tackle and even prevent even the regular thieves ur street in the name of insecurity

Cognitivereason:


lol..
you are very funny..what makes you think Nigeria shouldnt be compared with venezuela and sri lanka..

besides who compared resources u are so unstable in ur reasoning...

I am relating the policies these countries took..
inshort the economy of Nigeria, Sri Lanka and venezuela are not entirely different.. they are all rich in hydrocarbon and ofcourse oil export accounts for over 90% of all forex inflow..more than 60% revenue is gotten from oil..this is the same in all three..so what makes it different...they are all highly corrupt, were all wealthy during the 1980s in the early era of oil

the reason why Sri Lanka and Venezuela failed was because their central banks were not allowed to make economic policies autonomously..everything was politically oriented to meet the demands of their masses...until they ran out of forex everything cast..

this is different in Nigeria...look this things are all on the net, youtube will do justice to it..

your simple problem is ignorance..

I am not supporting any government...i comment on issues based on facts not emotions and prejudice..

I even wants Obi to lead next..so that Nigerians can understand that these things are not magic.. How want to see how he will fix ASUU strike, beat inflation to 0%, and provide 24/7 power most importantly let see how he will tackle and even prevent even the regular thieves ur street in the name of insecurity

this is our argument... What positive impact has their decisions bring except misery.
To whom much is given,much is expected.
The sole reason you're still talking is because Nigerians are too afraid to hold their leaders responsible, I believe we would have ousted our leaders before now. Do you mean we should applaud them or what are you insinuating?... The last sentence is very important

Major General Mohammadu Buhari and His APC Administration Has FAILED Nigerians WOEFULLY as Evidence in the Increase in the Rate of Interest in the Country.

Nothing Seems to be Working, Everything in the Country Keep Rising in Geometric Progression While Salary Remains Unmovable.

How do Nigerians Survived Despite All These Challenges, is Never a Problem that have Come Across the Minds of Major General Mohammadu Buhari and His APC Government Any day.

2023 is Around the Corner, Let Gather Our Votes and Push Them Out.

princeade86:
by when

After series of serious protests and strikes

Who's talking about CONTRACTIONARY MONETARY POLICY in a period of Demand-Pull & Cost-Push Inflation & HYPERINFLATION ?
Check your FACTS please!

Increase in "INTEREST RATES" will only make inflation worse (i.e, Hyperinflation)

Because we all know that the prices of goods are already INFLATED.

As a matter of fact, CONTRACTIONARY MONETARY POLICY isn't advisable in a period of INFLATION , but mostly in a period of DEFLATION (to reduce aggregate demand).

That's Pure Economics my brother!

Cognitivereason:


listen..you dont have a clue of what is going on in this country..nothing even an iota of facts ..you dont have any..

this is secondary school economics that u are here disgracing urself with..

when there is inflation..Central banks all over the world issue out monetary policies to control how money flows in and out of that economy..an important and most effective way is to slow down access to loans and disbursement of funds from commercial banks..
look just go on youtube and learn,..

no be everything u go dey shout abeg...

ur countries only export is crude oil...oil fell massively in 2014, we had covid 19 .today russia has worsened it with war..\

even if u had F9 in ur economics in secondary school..
u look at this 3 events and know in ur mind that Nigeria is a consuming nation yet u want $1 = 1kobo.

In the case of Nigeria, there's insufficient supply of money in circulation.

Your ARGUMENT is ok for Demand-Pull Inflation.

But Nigeria is faced with Cost-Push Inflation.
This CONTRACTIONARY MONETARY POLICY (Increase in Interest Rate) will only lead to HYPERINFLATION my brother.

As a matter of fact, NOT EVERYBODY goes to school, but EVERYONE knows that the cost of FLOUR & other FACTOR inputs are PERSISTENTLY INCREASING.

#No 1da, d resent news abt d Nigerian Bakers Association going on strike.

Even a common man can now see the effect of your unstrategical CONTRACTIONARY MONETARY POLICY (Increase in Interest Rate)

Check your FACTS again please!