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Fiscal Policy Determinants of Money Demand in Nigeria: ARDL Bound Testing Approach

The study examines the fiscal policy determinants of money demand in Nigeria using annual time series data from 1981 to 2017. The study intends to determine the effects of fiscal policy variables on money demand in Nigeria. A modified Fisher money demand model was estimated using ARDL to capture the long-run equilibrium relationship between the variables. The results showed that the fiscal policy variables had a stable long-run equilibrium relationship with money demand in Nigeria. Among the fiscal policy variables examined, government spending was found to be most impactful on the demand for …

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