International records / OpenAlex research

Transmission Mechanism from Money Supply to Inflation in Nigeria

This paper seeks to establish the transmission mechanism from money supply to inflation in Nigeria in order to resolve the controversy of whether money supply or interest rate should be a target of monetary policy. In doing this, a recursive vector autoregression (VAR) model is employed using data from first quarter 2000 to fourth quarter 2013. The response of CPI to money supply ranges from zero to 0.014. The response of interest rate to money supply ranges from -0.094 to 0.021. The response of exchange rate to CPI ranges from -0.007 to 0.013. The response of exchange rate to interest rate ra…