IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 6 NO. 2 2020

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Money Supply, Inflation and Economic Growth in Nigeria

Asuquo Ekpeyong, Emefiele Charles, Olugbemi Kolawole O. & Ita Richard Ita

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Abstract

The study empirically investigated money supply, inflation and economic growth in Nigeria. The specific objectives were to; determine the effect of broad money supply, inflation, interest rate, labor supply on the growth of Nigerian economy, using GDP as a proxy. Annualized time series data from the CBN statistical Bulletin, 2018 were obtained for the study. Ordinary least square multiple regression statistical technique was adopted in the analysis of data. Results indicated that money supply had positive and significant effect on economic growth in Nigeria during the period. The study also revealed that inflation, labor supply, interest rate had positive and insignificant effect on economic growth in Nigeria. The implication is that broad money together with price can facilitate economic growth. Based on these results, it was recommended that government should sustain the deepened financial system for continuous flow of funds across the sector of the economy

keywords:

Money supply, Inflation, Interest rate, labor supply, GDP

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