ALIGNING MONETARY AND FISCAL POLICIES TOWARDS ACHIEVING A ROBUST FINANCIAL SYSTEM


Prof. Kenneth Amechi. IFE
Visiting Professor, Godfrey Okoye University, Enugu, Nigeria
Abstract
The study sought to ascertain the strategic framework and specific policy actions required to align Nigeria’s monetary and fiscal policies to achieve a robust, shock-resilient, and efficient financial system. Aligning monetary (Central Bank) and fiscal (Government) policies creates a stable economic environment, crucial for a robust financial system by preventing inflation, reducing uncertainty, and encouraging investment; this involves coordination on debt, spending, taxes, and prioritizing long-term stability over short-term fixes, with strong central bank independence and clear rules ensuring consistent, data-driven decisions that build confidence and support crucial reforms like bank recapitalization for sustainable growth and resilience against shocks. Both monetary and fiscal policies are essential tools for steering the economy towards growth, stability, and full employment. While monetary policy focuses on adjusting money supply and interest rates, fiscal policy involves government spending and taxation to achieve macroeconomic goals. Monetary and fiscal policies are considered crucial for establishing a robust financial system; hence the need to align them, especially in Nigeria.
Keywords: Aligning, Monetary, Fiscal, Policies, Achieving, Robust, Financial, System
Journal Name :
International Journal of Global Economic Light (JGEL)

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Published on : 2026-01-27

Vol : 12
Issue : 1
Month : January
Year : 2026
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