I’ve been out of the blogosphere for a while and a lot has happened since then. This is a quick round up of my thoughts. First on the foreign reserves, which as at last week had hit somewhere around $47bn. Cue the statistic being turned into a political weapon and spun as some kind… Continue reading Catching up: on reserves, swap deals, and inflation
My column in the guardian today asks questions about what continues to be a worrying trend: the underhand financing of the federal government by the central bank. My concerns are driven by the chart below which shows the claims to the federal government by the CBN. Notice the spike over the last three years.… Continue reading Who will finance the budget?
The relentless march of inflation continues. The NBS reports the headline number as 18.3% in October, up from 17.9% in September. It’s also inching up on a month-on basis. There are some who would argue that the central bank does not need to act and should in-fact ease monetary policy. They say inflation is supply… Continue reading The inflation march continues + future shocks on the way?
Remember the N5000 note? And the alleged inflation effect? Wrote a paper with a colleague about it. What happened the last time we introduced new notes? The N100 and N500 and so on. Turns out nothing happened. Although something happens anytime we introduce a note. We panic. But not for long. You can read the… Continue reading The Introduction of Higher Banknotes and the Price Level in Nigeria: An Empirical Investigation