Determinants of Money Supply in Nigeria

Authors

Aderopo R. Adediyan, University of BeninFollow

Keywords

Autoregressive distributed lag, financial liberalization, money supply determinants

Abstract

Studies on money supply determinants focus on the Classicists or Monetarists, Keynesians and post-Keynesians variables like income and money multiplier. This research extends the literature on money supply determinants to include the influence of financial liberalization on money supply with a reference to Nigeria between 1980 and 2019, using the Autoregressive Distributed Lag (ARDL) approach. Data used for the study were collected from the 2019 CBN Annual Statistical Bulletin. The study found that financial liberalization is an important factor in determining money supply in Nigeria, in addition to currency ratio, required reserve ratio and high-powered money. As a result, the extent of the liberalization of the financial sector matters in decisions on the regulation of money supply in the economy

Author Bio

The author is of the Department of Economics, University of Benin, Benin City, Nigeria

Publication Title

CBN Journal of Applied Statistics

Issue

2

Volume

11

First Page

181

Last Page

199

Recommended Citation

Adediyan, Aderopo R. (2020) "Determinants of Money Supply in Nigeria," CBN Journal of Applied Statistics (JAS): Vol. 12: No. 1, Article 2.
Available at: https://dc.cbn.gov.ng/jas/vol12/iss1/2