Remittances, financial development and the effectiveness of monetary policy transmission mechanism in Nigeria: a DSGE approach (1986–2018)

The study examines the effect of remittance inflows on effectiveness monetary policy transmission channels in Nigeria using New-Keynesian DSGE model. employs quarterly data spanning from 1986:1 to 2018:4. Four different are considered namely interest rate, exchange credit and expectation channels. Results show that hinder This implies bulk into country do not pass through financial system. Rather, inflow is informal thereby making it difficult for authority control amount inflow. Furthermore, given impact output gap, shows has low persistence economy despite spent consumption investment. Considering inflation, inflationary. concludes better sterilize country, should encourage