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Periodical article | Leiden University catalogue | WorldCat |
Title: | Budget deficits, money growth and price level in Nigeria |
Author: | Chukwu, Jude Okechukwu |
Year: | 2013 |
Periodical: | African Development Review (ISSN 1467-8268) |
Volume: | 25 |
Issue: | 4 |
Pages: | 468-477 |
Language: | English |
Geographic term: | Nigeria |
Subjects: | budget deficits prices money supply |
External link: | https://onlinelibrary.wiley.com/doi/10.1111/1467-8268.12042/pdf |
Abstract: | This study investigates the long-run causal relationship between budget deficits, money growth and price level in Nigeria between 1971 and 2008. The empirical findings predict a long-term cointegrating relationship with unidirectional causality running from budget deficit to money supply growth and then from money supply growth to price level in the H.Y. Toda and T. Yamamoto (1995) sense. Thus, the T.J. Sargent and N. Wallace (1981) 'Unpleasant Monetarist Arithmetic' hypothesis holds for Nigeria, which suggests that the time path of government budget deficit be weakly exogenous in the long-run money-growth equation. Therefore, fiscal policy would have great impact on money growth. The Central Bank of Nigeria could be more effective in promoting economic stabilization and economic growth through expansionary monetary policy that would enable private sector access to credit facilities. Bibliogr., sum. in English and French. [Journal abstract, edited] |