A Further Empirical Investigation To The Concept Of Money Demand In Nigeria

Project and Seminar Material for Economics

Project and Seminar Material for Economics


Abstract


The paper investigated the empirical relationship between broad definition of money, real income, interest rates, expected inflation and expected exchange rate and examined the constancy of this relationship in the light of economic reforms that had taken place in Nigeria since 1987. The study confirms a long-run relationship between real balances, income, interest rates, and inflation. The significance of foreign interest rate and expected
exchange rate indicates the presence of currency substitution.


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