THE IMPLICATIONS OF CLOSED ECONOMY (AURTARKY)

The type of economy running in Nigeria today was good example of closed economy. Looking at two sector model two variables was putting into consideration l:investment, s:saving here is the linear model: y= l+s . So for a country like Nigeria with almost 2million people this model will suffocate people to death. It also the Genesis of our recession. This model alone will stop the inflow of foreign currency, even at international foreign exchange market the percentage of exchange rate is just three percent. The conflict policy of central bank of Nigeria was cause of our recession. They need expansionary monetary policy to get rid of economy depression facing Nigeria.