Bandit C.:

Do you even know what the multiplier effect denotes, when and how it takes place? People would be making use of economic jargon they have no idea what it actually means or how it is applied all in the name of sounding smart. Na wao.

Please tell us. Help us. Please explain. What is Multiplier Effect?
Thanks in Advance Mr Professor.


PS: No "Googling" Please. We can easily spot plagiarism

Bandit C.:

Do you even know what the multiplier effect denotes, when and how it takes place? People would be making use of economic jargon they have no idea what it actually means or how it is applied all in the name of sounding smart. Na wao.

Professor Bandit nwanne, please explain to us what multiplier effect means

Because what benimorgu said was absoulely right

In economics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable.

For example, suppose a one-unit change in some variable x causes another variable y to change by M units. Then the multiplier is M.
http://en.wikipedia.org/wiki/Multiplier_(economics)

Bandit C.:

Do you even know what the multiplier effect denotes, when and how it takes place? People would be making use of economic jargon they have no idea what it actually means or how it is applied all in the name of sounding smart. Na wao.

My brother, I have to agree with what he wrote although he meant in the monetary aspect as applied to fiscal policies but he's indeed correct.

we all need to be careful before posting misleading posts on nairaland

Alj_harem,

Please, STOP posting from WIKI, if you want to explain what ME is, please use examples reflecting from the monetary aspect that has effect on the fiscal policies of govt and economy.

I will resign from this cabinet if the removal of fuel subsidy is reversed” Ngozi Okonjo Iweala Tells Johnathan

Mrs Ngozi Okonjo Iweala the honourable minister of Finance who also doubles as the co-ordinating minister of the Economic Council has on wednesday during the first FEC meeting in 2012 threatens to quit the cabinet if perhaps president Jonathan should bows to pressure and reversed the removal of fuel subsidy.”

http://www.naijaurban.com/i-will-resign-from-this-cabinet-if-the-removal-of-fuel-subsidy-is-reversed-ngozi-okonjo-iweala-tells-johnathan/

This bint called Iweala is really stup!d.
Useless woman!

manny4life:

Alj_harem,

Please, STOP posting from WIKI, if you want to explain what ME is, please use examples reflecting from the monetary aspect that has effect on the fiscal policies of govt and economy.

so at least can use books to back my arguement ?

http://books.google.co.uk/books?id=C0me_egxxDcC&pg=PA724&dq=what+is+multiplier+effect+economics&hl=en&sa=X&ei=maUET-DGH8Gc8gOorJyaAQ&ved=0CEEQ6AEwAQ#v=onepage&q=what%20is%20multiplier%20effect%20economics&f=false

Dear Seun, Thanks for clarifying.
It appears "Subsidy" is about the hottest topic now, but with all these debate for and against subsidy don't you think its time you set up a NAIRALAND SUBSIDY OPINION POLL and lets see on which side the Majority is?

alj_harem:

so at least can use books to back my arguement ?

http://books.google.co.uk/books?id=C0me_egxxDcC&pg=PA724&dq=what+is+multiplier+effect+economics&hl=en&sa=X&ei=maUET-DGH8Gc8gOorJyaAQ&ved=0CEEQ6AEwAQ#v=onepage&q=what%20is%20multiplier%20effect%20economics&f=false

LOL, so from WIKI, it's now textbook? Ok o, no harm with textbook at least textbooks are published and have ISBN # which often are verified but WIKI isn't. So do you want to use your textbook to give us a brief of what ME is? I mean cause and effect (definition) of ME as related to fiscal policies?

ME or Multiplier Effect in lay man's terms means when a major factor of production or a major product/item or whatever is affected or modified in any way, it has a similar effect on products or other things that rely on that major factor. I no get the textbook definition but you get the idea. In our situaion and increase in the price of fuel will cause a related % increase in inflation and most likely a devaluation of our currency. ati be be lo

Pain:

Please tell us. Help us. Please explain. What is Multiplier Effect?
Thanks in Advance Mr Professor.


PS: No "Googling" Please. We can easily spot plagiarism

For a start, in a ley man's term, the multiplier effect is not used, economically speaking, in a negative way. Multiplier effect takes place when a factor is increased for example, increase in government spending or increase in investment spending, which would tend to lead to increase in production, employment and eventually income which most of the time tend to be more in relation to the initial money invested or spent (government or investment spending)

Multiplier effect does not equal ''adverse'' effect which i believe our guy actually meant.

Multiplier effect denotes increase in wealth, assets or capital and not otherwise like increase in price caused by removal of an existing subsidy.

Get it now?

So i do not see how the subsequent increase that would affect prices of commodity in Nigeria, in the coming weeks, is an example of multiplier effect.

2mch:

ME or Multiplier Effect in lay man's terms means when a major factor of production or a major product/item or whatever is affected or modified in any way, it has a similar effect on products or other things that rely on that major factor. I no get the textbook definition but you get the idea. In our situaion and increase in the price of fuel will cause a related % increase in inflation and most likely a devaluation of our currency. ati be be lo

Lay mans terms right? Major factor of production? Where are you guys get this your definitions from?

I use to hold this woman in high regards but for her to Lie to Nigerians that the President is still "CONSULTING" on removing the F-S,where as they've concluded on what to do has made her the greatest Nigerian liar ever lived.

Men! I DONT GIVE A RATS ASS IF NGOZI RESIGNS. SHE'S NO GOOD TO THIS COUNTRY, NEVER WAS. SHE JUST A PAWN AND A SPY SENT BY THE IMF.

Challas:

I use to hold this woman in high regards but for her to Lie to Nigerians that the President is still "CONSULTING" on removing the F-S,where as they've concluded on what to do has made her the greatest Nigerian liar ever lived.

+ 10

Ngozi Okonjo-Iweala, What will it cost you to have a talk with Prof Tam David West, who has been singing that fuel is not subsidized, it is all a fraud.  Is it not wisdom to let him explain this point to you first b4 taking any action? Nigerian leaders are generally very fraudulent. If you must work with them, you must verify all they tell you or you lose credibility. You have removed what never existed. All FG should have done is to identify the currupt govt allies/bizmen/workers and deal with them. Oh no, Jonathan is so afraid to name and trash them. What a shame! You are all now punishing the masses for the sins of your currupt party financiers. SUBSIDY IS IMMAGINARY, they therefore cannot face Prof Tam David West.

Jonathan, I serve the Living God and He says that you Know the truth but so afraid to do the right thing.

Resign or not, who cares? This woman must be suffering from an exagerated sense of self. Does she think that a person's intelligence is determined by the circumference of his/her head. She can take her humpty-dumpty self back to her masters.

Marlboro1:

Re: Ngozi Okonjo-iweala Didn't Threaten To Resign Over Subsidy
« #22 on: Today at 07:29:35 PM »
--------------------------------------------------------------------------------

Ngozi is an Igbo woman.
She CANNOT resign from such a juicy position in a country like Nigeria



You are such a fool. Did she not throw the same dam job back at OBJ when they tried to mess with her? The honorable lady is President of World Bank for crying out loud and is only here trying to help clean up the mess your people created.  Igbos are smarter than you and your f@#*ing people. Ewu nwuru anwu!

You are a fool,who told okonjo was the President of World Bank,you must be high on weed. Goto bed joooor slowpoke

She has carried out her mission, please leave us in our pains now. biko!

kruku:

She has carried out her mission, please leave us in our pains now. biko!

You are the true son of the soil. Igbo kweun. God bless you

Nigerians  want to remain stagnant, pls our economy need to grow like others.  With this new fuel price, is still below $1 per litre and I tell you, among African countries and even the world at large, Nigeria buys fuel at cheapest price.  Though, I can understand the anger, Nigerians are faced with hardship.  My opinion, let fuel price come down to at least N100/litre.  With this, the people's anger can be eased.  I am still in Nigeria at the moment, Nigerians are not finding it easy.  I pity a lot of people here.

I wedded this last December and so many people that came for my wedding are stranded and not to blow my trumpet, I know how many people I have assisted to go back to their various places they returned from, while I hope to go back to Sweden first week of February.

PLC is no more a bachelor.

plc group:

Nigerians  want to remain stagnant, pls our economy need to grow like others.  With this new fuel price, is still below $1 per litre and I tell you, among African countries and even the world at large, Nigeria buys fuel at cheapest price.  Though, I can understand the anger, Nigerians are faced with hardship.  My opinion, let fuel price come down to at least N100/litre.  With these, the people's anger can be eased.  I am still in Nigeria at the moment, Nigerians are not finding it easy.  I pity a lot of people here.

I wedded this last December and so many people that came for my wedding are stranded and not to blow my trumpet, I know how many people I have assisted to go back to their various places they returned from, while I hope to go back to Sweden first week of February.

PLC is no more a bachelor.

No sir

Stop comparing Nigeria with other countries BECAUSE WE HAVE DIFFERENT EXCHANGE RATES AND YOU CANNOT BE CONVERTING OUR MONEY TO DOLLARS OR POUNDS TO PROVE A POINT.

ALSO THE STANDARD OF LIVING IN THOSE COUNTRIES YOU MENTIONED ARE WAY HIGHER THAN Nigeria so people since we are not Illiterate can you stop the comparison already.

Ngozi iweala is from ogwashi -uku in delta state . Na so ogwashi people dey behave any how like goats .

@Pain: I'd like to do that, but rigging a Nairaland poll is extremely easy and has been done many times.

plc group:

Nigerians  want to remain stagnant, pls our economy need to grow like others.  With this new fuel price, is still below $1 per litre and I tell you, among African countries and even the world at large, Nigeria buys fuel at cheapest price.  Though, I can understand the anger, Nigerians are faced with hardship.  My opinion, let fuel price come down to at least N100/litre.  With this, the people's anger can be eased.  I am still in Nigeria at the moment, Nigerians are not finding it easy.  I pity a lot of people here.

I wedded this last December and so many people that came for my wedding are stranded and not to blow my trumpet, I know how many people I have assisted to go back to their various places they returned from, while I hope to go back to Sweden first week of February.

PLC is no more a bachelor.

At least Nugeria is richer than Ghana, Gambia Chad, Zimbabwe,  Zambia etc.  Still they buy fuel at higher prices.  Though, Nigerians need to buy it cheaper we have enough fuel in Nigeria.

alj_harem:

No sir

Stop comparing Nigeria with other countries BECAUSE WE HAVE DIFFERENT EXCHANGE RATES AND YOU CANNOT BE CONVERTING OUR MONEY TO DOLLARS OR POUNDS TO PROVE A POINT.

ALSO THE STANDARD OF LIVING IN THOSE COUNTRIES YOU MENTIONED ARE WAY HIGHER THAN Nigeria so people since we are not Illiterate can you stop the comparison already.

Thanks. They keep coming up with all this basic arithmetic currency conversions without mentioning "per capita income", "minimum wage" and "social security". They keep thinking in one dimensional rather than multi-dimensional. You cant just pick one index devoid of other key indices and expect us to swallow them hook line and sinker like the zombie generation of the 80s and 90s. I think that lost generation is finding it hard to come to terms or keep up with the fast changing pace of things in addition to the ubiquitous impact of new media.

Please wake. The age of the gullible is long past! Enough of the voodoo economics

@alj_harem

I’m not going to insult you because I’m more civilised and a better person than you. I know and see the pain on people’s faces, let’s be frank this this is the reform they needed to liberate themselves from the shackles of greedy petrol importers. I don’t you want to have the illusion that you care about Nigeria people more than the president. As I said earlier the president don’t even know me, the way I see things the present president and what he can produced is the best you have today in terms of election and democracy, you have no alternatives. If you asked about one hundred million Nigerians how to govern the country, you will get one hundred million different answers. Yes, it could have been done better but the president is scared of attempting to build refineries because he knows the hand behind the scene will frustrate that project, billions will be wasted because, he can’t control them. These are cabals who are there before him.

The worst you could do is to ask him to do more than what is capable of. If you asked of my personal opinion I will say the reform was hastily introduced and that soft landing have not been put in place before introduction. You can even see on their statement they were saying they have yet to decide the benchmark of prices they will approve for sales of petroleum product, you wonder if they have not set the prices why did they abolish the subsidy and throw the people they are trying to help to the wolves? But that is what you have; support the president to move your country forward, not by barking at each other. I don’t think the president got there by merit he was only elected. Please don’t quote Buhari to my face, he is only playing politics. He too has his own mistakes when he was in power least we forget his retrogressive laws on drug pushing. There is nowhere on earth where they made laws and back-date the effective day retrogressively. Maybe this will be GEJ mistake. All said and done removing subsidy is good idea though the way and manner of its introduction is questionable. Please don’t bark at me this forum is a place to air views I’m only airing my own like everyone else.

She doesnt bloody care abt wat a common nigerian is facing.Madam's definition of serving the nation is her brainwash IMF policies dat has neva favour de masses

plc group:


At least Nugeria is richer than Ghana, Gambia Chad, Zimbabwe,  Zambia etc.  Still they buy fuel at higher prices.  Though, Nigerians need to buy it cheaper we have enough fuel in Nigeria.

Nigeria is richer but what do they have to show for it ?

the standard of leaving in ghana is higher than Nigeria standard of living

so what exactly are you comparing

Fellow Nairalander,

Permit me to say the following already "supposedly" known facts:
1. Madam Iweahala is simply doing the bidding on her international collaborator - IMF/World bank, so don't expect anything different from her.
2. Ngozi is just helping the western / 1st world export inflation from the west to Nigeria. The west /1st world nations are known for leveraging on the chaotic conditions in the 3rd world nations. In other words, they use their instruments like IMF/World bank to unleash hardship on the 3rd world nations by using their agents like Madam Iweahala to implent their policies.
3. Take a look at all the "countries of interest" to the western world such as DRC, Angola, Nigeria, e.t.c; all are battling with one problem or the other.
4. No one can become a leader in any of these "countries of interest" without the strong support of either America, Britain or France. And when you ride on their support to get to power, they will use their agents within your country to make your government unpopular and get rid of you if you are lucky to escape death. This is the reason GEJ dances to their tune like mugu. He does not have the political will-power to challenge them or any of their institution. Any attempt to challenge them will cost him his job and if lucky, he will be alive.
5. As for Nigeria, they have a project to divide the nation and quarantine the South-south region which is their major interest. Their target is on or before 2015. To achieve this, they are using naija northern political elites who have hijacked the original course of Boko Haram to create state of anarchy in the Northern naija.
6. The greatest collaborator of CORRUPTION in naija are the western/1st world. They collabo with their agents in naija to perpetrate these wickedness at our own expense for their gains and that of their cronies. THAT'S WHY IT IS SO DIFFICULT TO EASILY FIGHT CORRUPTION IN NAIJA. The memories of the Halliburton and Siemens scandals still linger.
7. The most painful thing is that THE SO CALLED LABOUR, HUMAN-RIGHT GROUPS, CIVIL SOCIETY AND RELIGIOUS LEADERS, all know these facts but everyone turn blind eyes simply because they all benefit from these Western/1st world in one way or the other.
8. If GEJ needs the purported 1.3tr naira used on fuel subsidy, he should go to naija waters and fight corrupt practices going on there.

In the light of all these, Naija should watch and pray. May the ALMIGHTY GOD deliver naija from all the demons who have held her in bondage.

What will favour the masses on long term is the abolition of subsidy