Heyzee5:
Hi all. I was just thinking, from an economic perspective, is it advisable to share money to all Nigerians in this pandemic period? Won't that result in Inflation/HyperInflation? I am just looking at the economic angle of this.

I am aware that this is currently done in the US, but I just want to hear our opinions. I also understand that there is hunger in the land but, kindly note that this is merely a discussion before you bash me

Everyone is welcome to submit his or her opinions especially if you are an Economist in the house.

Thanks.

I have that opinion too, the moment everybody gets money from Government the woman selling garri will want to increase the cost her garri and at end the money will be useless.

I think the best thing to do is share food stuff. I don’t know they want to do it but I think it’s the best thing to do at the moment

visijo:
If you smoke and your partner smoke, that relationship is called "Ashes to Ashes"


Can any good thing come out of Nigeria?

Yes..... Atleast we are making progress in combating covid19

Few goods are avial. On the otherhand on comparing Us- the Nigerian economy, one should note that the former is a developed economy of which "price stability" could be seen as it's characteristics as compared to the Nigerian economy.
The Economy currently is undergoing inflation. Hoping recession doesn't hit us that soon.

Corrinthians:
This whole scheme is frought with fraud.

The fact the government can't really explain how beneficiaries were selected makes rubbish of the scheme.

Simply dolling out cash to random people isn't going to solve any problem. What I feel should have been done was to focus more on a productive section of the population, perhaps, to cushion the economic impact of the pandemic on their businesses because they'd surely take a hit. I'm talking about SMEs.

And when they are given without purchasing power to demand for the produce price is expected to fall. This is because no correlation between demand n supply

No implication because if they had allowed people to go out to work freely like before, the people would have made more money than the one to be supplied to them by the Federal Government.

This person is crazing for you to put this post out

Pls someone should help me,this lockdown has not been easy for me,I haven't taken anything apart from the bread I took this morning,and I don't have any hope of what I will eat tomorrow.pls help me.2085101641.uba

NaijadrivaCars:
Economic angle kee you.

So make people die abi

Las laa, world economy don crash.


Imam of Peace sef

The guy asked a simple, brilliant and harmless question but you chose to be stupid.

Ibechris2:
The implication is this,Nigeria is not an exporting country but an import based economy. Is not wise when u give out money that will take u many months or years to recoup.
However,some will say but America is giving out cash and why is it not affecting them, the fact is,America is the biggest economy in the world and could afford to print as many dollar papers as possible to cushon the gab caused by the Covid 19. They are a productive economy,that cannot be compared with any nation on earth and that is because they produced virtually all what they consume ranging from agricultural,Mechanical,down to techs and many more.

In our own case,when there is so much money in the economy,that seems to drive us into recession/inflation because the cash is not being given to the productive sectors of the economy. In America,the stimulus package is being given to those who recently lost their jobs and to private businesses who could retain the services of their employees,with that the the stimulus package becomes a grants to the private business men and why it becomes a loan if they layoff their workers....that is why theirs is different from ours.

The best is for Nigeria to embark on house to house testing for Covid 19 and open the economy as soon as possible,this is fundamental because our case is quite opposite of America. We are lucky not to have recorded the kind of numbers that has been recorded in other climes and that is why we should approach it with our local know how as explained by Oyo state governor.

This assertion of yours is not true in this case.

It has no negative impact on the economy in perspective so long new more currency are not printed by the apex bank which is the cbn. Talking about inflation which means lot of money chasing after few goods thus the money shared by the federal government doesn't necessitate higher inflation rate because the money have already been in circulation.

SweetCunt97:
Inflation. When there's much cash in circulation, this leads to inflation making the value of the money drop.

Went to the market with 20k 3 days ago and to be sincere I no even see wetin I buy now. Kept wondering how the money vanished

Facts
Done three massive rounds of shopping in last few weeks
Close to 120k
You dont even see what you bought

mtinfx:


Facts
Done three massive rounds of shopping in last few weeks
Close to 120k
You dont even see what you bought

Toh. I said it. It's well my brother

ahahahah Bro, I neva received mine. How far, you don collect yours?

nedekid:

Lai Mohammed said the had shared 100b as at last week. Did you not receive?

It will work if you understood the velocity of money.


As long as you don't spend the money importing stuff outside of Nigeria.

You get the money back via taxes .

The us is printing money yet the dollar keeps rising ,this is because most assest managers are hiding under the dollar in this times of uncertainty.


As for Nigeria, it can also work , just make sure its not spent on imports and that's the hard part.

The government expansionary monetary policy increases the money stock in circulation leading to a proportional increase in prices. Prices are determined by markets forces of demand and supply. So, when money in circulation increases, the consumption or demand of the public increases causing a consequential shifting of demand curve price to the right. The govt should strengthen its fiscal policy by increasing tax to help reduce currencies in circulation.
By Igo Victor Idubia
A financial analyst

primehero:
The government expansionary monetary policy increases the money stock in circulation leading to a proportional increase in prices. Prices are determined by markets forces of demand and supply. So, when money in circulation increases, the consumption or demand of the public increases causing a consequential shifting of demand curve price to the right. The govt should strengthen its fiscal policy by increasing tax to help reduce currencies in circulation.
By Igo Victor Idubia
A financial analyst

This is book theory , we have to start thinking outside of the box because the global system is corrupt.

Also this theory is not supporting what's happening in the us

I won't also call it a book theory. Anyways you neglected the fact that "tax" contribute less than 10% of govt revenue here in Nigeria. On the other hand you ignored "tax incidence" of which we both know given the current situation, consumers won't be able to bear it since the producers will hike price as a result of tax placed

primehero:
The government expansionary monetary policy increases the money stock in circulation leading to a proportional increase in prices. Prices are determined by markets forces of demand and supply. So, when money in circulation increases, the consumption or demand of the public increases causing a consequential shifting of demand curve price to the right. The govt should strengthen its fiscal policy by increasing tax to help reduce currencies in circulation.
By Igo Victor Idubia
A financial analyst

Which sch you dey?

emkz:
Yes. Too much money in the hands of consumers chasing too few goods leads to inflation. The US can do it because they have data and have the money while Canada has data, money and a low population. China wouldn't dare such, nor Germany, Russia, France or Japan. It would wreck their economies.

Since we have a traditional problem of data capturing, it would have worked better to subsidize food items, essentials and other consumables (minus beer please). A workable solution is to liaise with the market leaders by providing the money to them (and asking them to give account daily). This money is to offset the differential for goods purchased by the consumers. There might be problems arising from it, but it is better than giving money directly to the consumers; for example, I can go with my wife and say I am the head of the family while she can claim she is a widow. Who can verify these claims without data?

If I were to advise government, I'd have suggested government focuses palliatives on these two states. It is easier to manage 25 million persons than managing 200 million: that money won't go round. Also Dangote, Lake Rice, and other big northern farmers need to be engaged to flood Lagos and Abuja with food. That the government can afford for 1-2 months...since they have been paying fuel subsidy since I was born.

it's quite simple and self explanatory,,
According to Macro Economics,once the population of the country is in tandem with the market price of the exchange rate of the fiscal policy ,,
It will invariably lead to a downturn of the inward curve in the diminishing returns of the laws of demand and supply which will inturn regulate the overflow of the currency to compel the inflation rate to rotate,in case u didn't understand ,neither do i.

primehero:
The government expansionary monetary policy increases the money stock in circulation leading to a proportional increase in prices. Prices are determined by markets forces of demand and supply. So, when money in circulation increases, the consumption or demand of the public increases causing a consequential shifting of demand curve price to the right. The govt should strengthen its fiscal policy by increasing tax to help reduce currencies in circulation.
By Igo Victor Idubia
A financial analyst

There are exemptions to this rule. In this present case, you can't save the looming suffering wether or not money is distributed. Inflation is already imported and in a situation where oil is selling below 30$ per barrel and oil being the major commodity, no policy can save us. We suffer because we have not diversify our economy to a larger extent and we aren't even self sufficient when it comes to food production- food is selling now.
What we experience is not peculiar to Nigeria alone but as a matter of fact, a global phenomenon.
Suffering looms and the present situation cannot be saved as far as the Nigerian economy is concerned.

SweetCunt97:
Inflation. When there's much cash in circulation, this leads to inflation making the value of the money drop.

Went to the market with 20k 3 days ago and to be sincere I no even see wetin I buy now. Kept wondering how the money vanished

It cant cause inflation because cash isn't circulating at the moment.

excanny:
No implications but Nigeria doesn't have such money.

It will run into trillions of nair, paying just N20,000 to over 200 million people.

Nigeria produces almost nothing, so no seruous external revenue.

Nigeria can print Naira.

Acidosis:

Depends on the amount.

N10,000 or 20,000 each?? Absolutely none.


N200,000 each?? we are all fvcked!

When there are no enough to no resources to back up paper mo ey in circulation, that is only when Inflation can be talked about.
Nigeria have more than enough resources to back up #200K fund share per head but How do we curb the greediness of all the Private Families that have Ijacked the resources of the Masses?
These private families altogether make the Government both in the front and back!

It is workable in Nigeria if all its working citizens are well documented and all pay their taxes duly.

Much of the money you see the US govt paying its citizens are their (citizens) monies, cut from the taxes they paid to the govt in the year or previous.

This is a function of an organized and accountable society.

Grateful02:
I won't also call it a book theory. Anyways you neglected the fact that "tax" contribute less than 10% of govt revenue here in Nigeria. On the other hand you ignored "tax incidence" of which we both know given the current situation, consumers won't be able to bear it since the producers will hike price as a result of tax placed

This is because they don't have sense , if you're going to jump from a high place you need to put things in place for a soft landing.

They should firstly make loans available to those who will sustain the economy.. more jobs , more taxes .


Then give money to people, the key thing here is how much ... Very very important otherwise people won't bother to work.


While doing this collect information and create a database immediately for planning.. you will see how everyone will register sharp sharp once money is involved.

Once they've captured relevant information, they can use it for future planning.. eg taxes and further redistribution.


The money giving out will be collected back once you are back in work over a period, this will be done automatically.. they already have records.

Our problem is we can't think unless we take things out of oyinbo books, but they are gaming the system they created while we remain mumus for life.

remember they Buy Votes during election and heaven has not hyperInflated.

Heyzee5:
Hi all. I was just thinking, from an economic perspective, is it advisable to share money to all Nigerians in this pandemic period? Won't that result in Inflation/HyperInflation? I am just looking at the economic angle of this.

I am aware that this is currently done in the US, but I just want to hear our opinions. I also understand that there is hunger in the land but, kindly note that this is merely a discussion before you bash me

Everyone is welcome to submit his or her opinions especially if you are an Economist in the house.

Thanks.

Stipends can't cause an inflation...

Dshocker:


Stipends can't cause an inflation...

Actually, stipends can cause inflation if it is just monies printed from thin air as against monies in the government reserve.

Heyzee5:
Hi all. I was just thinking, from an economic perspective, is it advisable to share money to all Nigerians in this pandemic period? Won't that result in Inflation/HyperInflation? I am just looking at the economic angle of this.

I am aware that this is currently done in the US, but I just want to hear our opinions. I also understand that there is hunger in the land but, kindly note that this is merely a discussion before you bash me

Everyone is welcome to submit his or her opinions especially if you are an Economist in the house.

Thanks.

You deserve one chilled bottle of kunu for this question. If the stipend is just monies currently in the banks/system, then it may not necessarily lead to inflation. However, if the government does Quantitative easing by printing and injecting new monies into the system then inflation is possible.
Another possibility is artificial inflation when the economy resumes as prices may be hiked to make up for lost income.

Like this presently all djs are jobless. �