Influence of Money Supply on Inflation in the Nigerian Economy
Economics — 2025, Undergraduate
This study investigated the influence of money supply on inflation in the Nigerian economy. Time series data on money supply, inflation, and output were analysed using regression and cointegration techniques. The findings revealed that growth in money supply contributed to inflationary pressures, particularly when output growth lagged, while the effect was moderated by exchange rate movements and supply-side factors. The study observed lagged and sometimes unpredictable transmission of monetary impulses. It recommends prudent monetary management, coordination with fiscal policy, and attention to supply-side constraints driving inflation.
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