A dynamic specification of aggregate demand for money function in Nigeria

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Periodical article

Title:	A dynamic specification of aggregate demand for money function in Nigeria
Authors:	Akinlo, A.E. Folorunso, B.A.
Year:	1999
Periodical:	The Nigerian Journal of Economic and Social Studies
Volume:	41
Issue:	2
Pages:	227-248
Language:	English
Geographic term:	Nigeria
Subject:	money demand
Abstract:	The paper estimates the demands for money functions in Nigeria using the Error Correction Mechanism technique. The results show that there exists a stable, long-run demand for real M1 and M2 balances as a function of real income and other explanatory variables. This implies that the models adequately capture the salient features of the data and are consistent with the implications of economic theory. The results also show that the discrepancy between the actual and desired real money holdings in the previous period is not fully corrected in the present period. The paper suggests that effective control of money holdings would be better achieved through the adoption of an appropriate incomes policy. Bibliogr. sum. [Journal abstract]