An Economic Evaluation of the Effectiveness of Fiscal and Monetary Policies as Tools for Poverty Reduction in Nigeria, 1990-2013

An economic evaluation of the effectiveness of fiscal and monetary policies as tools for poverty reduction in Nigeria were carried out in this study by employing the ordinary least square (OLS) technique, using the data of annual time series for the period of 1990 to 2014.The OLS result shows that government expenditure, interest rate and tax contribute to poverty reduction (per capital income) positively but not significantly, while the contribution of money supply is also positive and significant.Hence if a policy aims at improving the standard of living of people, then effective use of fiscal and monetary policies are in dispensable.Both policies should be seen as complementing each other.