The Head of Banking and Finance Department, Nasarawa State University, Uche Uwaleke, stated this in a presentation made at a retreat for the House of Representatives Committee on Banking and Currency organised by the Central Bank of Nigeria.
Uwaleke, an Associate Professor of Finance, said the law would enable both authorities to effectively come up with the right policy mix in addressing the current economic challenges.
A copy of his presentation titled “Ensuring monetary and fiscal authorities synergy: The role of the legislature,” was made available to our correspondent on Monday.
He argued that failure to properly coordinate both fiscal and monetary policies is having negative effects on the economy.
For instance, he explained that without efficient policy coordination, financial instability could ensue, leading to high interest rates, exchange rate pressures, rapid inflation and adverse economic growth.
He added that a weak policy stance on one area could burden the other area and make the economy to suffer in the long run.
He said, “The need for policy coordination arises in the case of structural reforms and liberalisation of the financial sector.