Determinants and Stability of Money Demand in Nigeria

E. Chuke Nwude, K. Onochie Offor and Sergius N. Udeh
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E. Chuke Nwude: Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Enugu Campus, Enugu State, Nigeria,
K. Onochie Offor: Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Enugu Campus, Enugu State, Nigeria,
Sergius N. Udeh: Department of Accountancy and Finance, Godfrey Okoye University, Enugu, Enugu State, Nigeria.

International Journal of Economics and Financial Issues, 2018, vol. 8, issue 3, 340-353

Abstract: This study examines the determinants of broad money demand and its stability in Nigeria over the quarterly period 1991:Q1 to 2014:Q4. With ordinary least squares and other statistical methods the results indicate that a long-run relationship exists between the real broad money aggregate and real income, domestic interest rate, inflation rate, exchange rate and foreign interest rate. Real income and exchange rate are directly related to the real broad money balances while domestic interest rate, inflation rate and foreign interest rate are inversely related to the demand for broad money.

Keywords: Broad Money Demand; Autoregressive Distributed Lag; Monetary Policy; Stability; Nigeria (search for similar items in EconPapers)
JEL-codes: C32 E31 E37 F31 O52 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2018-03-40

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