Full Project – THE IMPACT OF EXCHANGE RATE VARIATIONS ON AGGREGATE DEMAND IN NIGERIA

Full Project – THE IMPACT OF EXCHANGE RATE VARIATIONS ON AGGREGATE DEMAND IN NIGERIA

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LITERATURE REVIEW

2.1 REVIEW OF THEORETICAL LITERATURE

The importance of exchange rate policies in economic adjustments cannot be overemphasized as it has become the subject of considerable debate in many economies in the word today.

Several economists in the world today have discovered that in the bid to achieve certain objectives, that are economy wide in nature, the issue of exchange rate cannot be handled lightly. They try to see if exchange rate instabilities affect other macroeconomic aggregates positively or negatively over time.

Efforts have also been made to see if the economic problems of the Less Developed Countries (LDCs) could be tackled employing exchanging ate policy as a vital instrument. To this end, several exchange rate models were propounded by different economies in the world to suggest how exchange rate could, in the first place, be determined.

 

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Full Project – THE IMPACT OF EXCHANGE RATE VARIATIONS ON AGGREGATE DEMAND IN NIGERIA