Abstract

This work as an empirical economics assessment examined the role of Nigerian domestic macroeconomic policies with emphasis on the management of the impact of macroeconomic variables on the global financial crisis in Nigeria. It applies VAR framework on annual time series data from 1969 to 2009. The paper opines that the Nigerian economy is far from converging towards a sustainable equilibrium in the short run. The paper suggests that attitudinal change, monetary and fiscal policies could be used to address the Nigerian version of the global financial crisis. However, the right mix of these policies to avoid conflicts in the light of dampening effects of the global financial melt-down as well as the possible effects of the global financial crisis and macroeconomic fluctuations on economic development in Nigeria is of relevance. The direction and magnitude of relevant policy to stimulate increased government intervention, it was observed that there is the need for comparative dynamics of economies in order to return to the path of sustainable growth and development.

Key words: Macroeconomic, financial crisis, econometrics, development, dynamics.