Economics

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ECONOMICS

The Impact of Money Supply on the Economic Growth of Nigeria

ABSTRACT



This research paper examines the impact of monetary supply for the economic growth in Nigeria. It explains different models under economic and statistical criteria to assess the real GDP i.e. real gross domestic product. It is regress while broad money supply, real interest rate, and real exchange rate are the regressors. CBN statistical bulletin was used for data collection with different methodological analysis with the use of econometric test. These results explain the expansionary credit for Nigeria within the study period under review that failed to influence the Real Gross Domestic Product. The only significant regressor is the real interest rate that is not one of the variable targets for the monetary policy. Major problems are identified for the militating effects against the poor performance of instruments of monetary policy in influence to the real GDP in Nigeria. The purpose of this research paper is to assess the impact of the money supply on economic growth in Nigeria. The secondary database was used from the period 1981-2010 with results that show an impact of the money supply on Nigerian economic growth.

Introduction3

Description4

Literature Review4

Study Objectives7

Research Hypothesis7

Significance of Study7

Research Scope and Sources8

Review of Empirical Literature8

Research Methodologies9

Model Specification9

Evaluative Methods and Estimation Procedures10

Findings based on Economic Criteria10

Findings based on Statistical Criteria11

Evaluation of Working Hypothesis12

Conclusion12

Recommendations13

The Impact of Money Supply on the Economic Growth of Nigeria

Introduction

The nature of such research study is very necessary in today's context of certain economic problems. The major significant problem is related to the reoccurrence of the instability in price and consistent pressures of inflation triggers in the economy. Over the years, there are plethoras of monetary policies that are continuously applicable and adaptive in the economic system of the country. This research paper deals in assessing and solving different problems through research work. Initial factors that lead to inflation include increasing annual rate of money that adversely increases the rate of price level. A policy response is the high requirement to cater such economic issues. The erection in the devaluation of Nigeria's currency value is due to the result of expansionary measures of money supply.

This research paper aims to answer about what is the objective of this economic research paper. It explains the research topic followed with definitions of key variables. The need to conduct research with its scope, significance, and consideration is another section of this paper. The burgeoning literature includes theoretical framework and previous findings about the topic. The interpretation of data or information with layout of research methods is approach for this research. Expected results and actual outcomes with future implications are discussed at the end of the paper.

The economic state of Nigeria tends to address following questions:

Are sufficient measures are taken for monetary policy in controlling the rate of economic depression in the Nigerian economy?

CBN failed to adapt contradictory and expansionary measures of money supply. Why they failed make corrective actions for problems of real GDP and high rate of inflation ...
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