Monetary policy shocks negatively impact Nigeria's agricultural sector, study finds.
This article looks at how changes in monetary policy affect the agricultural sector in Nigeria. The researchers studied data from 1981 to 2016 and found that when interest rates go up unexpectedly, it has a negative impact on agriculture. This happens because higher interest rates make it harder for farmers to borrow money. The study also showed that the exchange rate and monetary policy rate play a role in the long-term effects on agriculture. Overall, the findings suggest that policies focusing on interest rates, credit, and exchange rates can help improve the agricultural sector in Nigeria.