Resolving the Devaluation Puzzle in the Nigerian Economy
ABSTRACT
In 2008, operational problems of large mortgage banks resulting from weak regulation were in the process of endangering the financial system of the United State. Stock market prices declined significantly, and the United States had to provide emergency financial lifeline to the automobile and banking industries to avoid bankruptcy. The United States Department of Treasury (Ministry of Finance) and the Federal Reserve System (The Central Bank) quickly introduced expansionary fiscal policies to stimulate the American economy and in the process avoid a major recession with potential of spreading to the global economy.