ARCHIVES
VOL. 10, ISSUE 12 (2023)
Influence of money supply on inflation in Nigeria: (A review)
Authors
Park Idisi, Abdulmumin Imam, Linda Oyene Onche, Stephenie Kyangtuk Gambo, Murtala Gadam Muhammad
Abstract
Despite numerous political pledges to combat
inflation in Nigeria throughout both the pre-democracy and democratic eras, the
inflation syndrome has been extremely concerning since the beginning of both
the previous and present administrations. Regretfully, none of them have ever
been able to even somewhat lessen or stabilise this heinous syndrome. The
analysis looks at how Nigeria's money supply affects inflation by reviewing
several other studies in the field. The review examines the causes of
inflation, the impact of the money supply, the relationship between the money
supply and inflation, and it makes recommendations for both passive variables
that will stabilise the money supply and some of the causes of inflation. The
government should endeavour to enhance stabilisation programmes, especially
open market operations, to regulate surplus money in circulation and so reduce
inflation, according to some of the researchers' recommendations. Inflation is
caused by deficit financing because it promotes money circulation that is out
of step with productivity. As a result, less money should be borrowed by the
government. In order to lessen the negative impacts of inflation, the
government should also make sure that money is invested in important and
profitable economic areas rather than using traditional contractionary monetary
measures. The report also recommends concentrating greater attention on
variables other than the money supply that cause inflation in the nation in
order to lessen its threat to the nation's economic security.
Download
Pages:56-62
How to cite this article:
Park Idisi, Abdulmumin Imam, Linda Oyene Onche, Stephenie Kyangtuk Gambo, Murtala Gadam Muhammad "Influence of money supply on inflation in Nigeria: (A review)". International Journal of Multidisciplinary Research and Development, Vol 10, Issue 12, 2023, Pages 56-62
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.