Recession: Don advises FG on right policy mix

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A don, Prof. Akin Iwayemi has advised the Federal Government to apply the right “policy mix” to get the country out of economic recession.

Iwayemi , a Lecturer at the Department of Economics, University of Ibadan told the News Agency of Nigeria (NAN) on Wednesday in Abuja that the country would likely come out of recession in 2017.

Policy mix is the combination of a country’s monetary policy and fiscal policy.

These two channels influence growth and employment, and are generally determined by the Central Bank and the government respectively.

The don said that application of the right policy mix would determine how fast the country would come out of the economic crisis.

“If we get the policy mix right; the policy mix here involves exchange rate, the power sector and appropriate incentive for manufacturers.

“What happened to the small and medium scale enterprises will depend on the government fiscal behaviour,’’he said.

Iwayemi, a former President of the Nigerian Economic Society said one positive evidence that the country would get out of recession in the year was the oil price.

He said the price of oil was picking up again at the international market and that if the country got it right on the fiscal dimension, the economy would bounce back.

“A major factor last year that affected the economy was the shortage of foreign exchange for producers and it was because of the oil revenue that collapsed.

“Oil prices are rising now between 50 and 60 dollars compare to last year,’’ the don said.

NAN reports that some economists have also expressed similar view that the country would come of the recession in 2017.

According to them, the recovery will be slow, but if government increases productivity and implement the budgets, Nigerians will have reasons to simile again. (NAN)

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