Home Project-material THE IMPACT OF MONEY SUPPLY ON NIGERIAN ECONOMIC GROWTH (ACASE STUDY OF CBN, ILORIN KWARA STATE)

THE IMPACT OF MONEY SUPPLY ON NIGERIAN ECONOMIC GROWTH (ACASE STUDY OF CBN, ILORIN KWARA STATE)

Dept: ECONOMICS File: Word(doc) Chapters: 1-5 Views: 34

Abstract

The study examined the impact of money supply on economic growth in Nigeria using a case study of CBN, kwara state branch. The main objective of this study is to determine the impact of money supply on Nigeria economic growth in Nigeria, while other specific objective includes: to determine the factors affecting adequate money supply to the economy of Nigeria, to ascertain the relationship between money supply and Nigeria GDP .The research question adapted to the project includes: What is the relationship between money supply and Nigeria GDP? What are the factors militating against money supply in the Nigeria economy? This project paper relied on primary and secondary data [existing data]. The secondary data for this study of which the sources are from the central bank of Nigeria [CBN] statistical bulletin 2014 and it measure 1981 to 2014. In this project paper, we will examine and appraise the stock of money supply and its impacts with regards to growth in Nigerian economy using the

                       CHAPTER ONE: INTRODUCTION

1.1 Background to the study

    The relationship between money supply and economic growth has been receiving increasing attention than any subject matter in the field of monetary economics in recent years. Economists differ on the effect of money supply on economic growth. while some  agreed that variations in the quantity of money is the most important determinant of economic growth and that countries that devote more time to studying the behaviour of aggregate money supply experiences much variations in their economic activities about the role of money on gross national income.

     The supply of money affect economic activity of a country, the low level of supply of monetary in general and money stock particular has been responsible for the funder mental failure of many Africa countries to ascertain growth and sustainable development in term of economic, various scholars have laid down a lot of blame for the failure of monetary policies to translate economic growth on the federal government and its agencies due to poor implementation on part of policy makers. According to the monetarist, an increase in money supply in an economy causes an increase in general price level of commodities which brings about inflationary in the country.

      Also related to the issue of inflation is the issue of unemployment which is the primary goal of any economy so as to produce as many goods and service as possible while maintaining an acceptable price level stability, but thus major goal will be very difficult to attain at high inflation rate and price instabilities due to the reason of high supply of money in the economy.  

     This paper therefore aims to determine how much contribution has money supply contribute to GDP in Nigeria.



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