*2.1.2 Monetary policy*

Monetary policy is the pathway through which the Central Bank of Nigeria or the monetary authority in any country decides on amount of supply of money for that given country. It has been the "fundamental instrument over the years in attaining macroeconomic stability and as a prerequisite to attaining sustainable output growth" [7, 8]. Mathai [9] saw monetary policy as the regulating amount of the supply of money in a country's economy in order to attain an optimal mix of output and inflation goal realization. Jimoh [10] observed that it is generally believed that an exchange rate is an important variable that has a significant impact on the overall outcome of macroeconomic performance as it concerns internal and external balances. But Pattnaik et al. noted that a specific regime of the rate of exchange cannot be one solution fit it all remedy for the world, noting the real scenario can change at any time. Exchange rates can thus serve as "automatic stabilizers" for the macroeconomy in any nation [11].
