Sola, Olorunfemi and Peter, Adeleke (2013) Money Supply and Inflation in Nigeria: Implications for National Development. Modern Economy, 04 (03). pp. 161-170. ISSN 2152-7245
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Abstract
The study examines money supply and inflation rate in Nigeria. Secondary data that ranged between 1970-2008 were sourced from the CBN Statistical Bulletin. The study used Vector Auto Regressive (VAR) model. The stationary properties of the model were also explored. The results revealed that money supply and exchange rate were stationary at the level while oil revenue and interest rate were stationary at the first difference. Results from the causality test indicate that there exists a unidirectional causality between money supply and inflation rate as well as interest rate and inflation rate. The causality test runs from money supply to inflation, from the interest rate to inflation and from interest rate to money supply. The paper concludes that government should use the level of inflation as an operational guide in measuring the effectiveness of its monetary policy.
Item Type: | Article |
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Subjects: | Open Research Librarians > Multidisciplinary |
Depositing User: | Unnamed user with email support@open.researchlibrarians.com |
Date Deposited: | 07 Jul 2023 04:42 |
Last Modified: | 26 Oct 2023 04:48 |
URI: | http://stm.e4journal.com/id/eprint/1384 |