IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-6p4164-4175.html
   My bibliography  Save this article

A Test of the Monetary Theory of Inflation: An Experiment with Nigerian Data

Author

Listed:
  • Morison Oghenemine Okpada

    (Department of Economics, Faculty of the Social Sciences Delta State University, Abraka, Delta State, Nigeria)

  • Enoh Hilda Olele

    (Department of Economics, Faculty of the Social Sciences Delta State University, Abraka, Delta State, Nigeria)

Abstract

The study empirically investigated the monetary theory of inflation using Nigerian data from 1980 to 2022. Annual data on the inflation rate, monetary policy rate, exchange rate, interest rate, and money supply were sourced from the Central Bank of Nigeria (CBN), the Nigeria Bureau of Statistics (NBS) and the World Development Indicators (WDI). The study regressed inflation rate as the dependent variable on the monetary policy rate, exchange rate, interest rate and money supply as the independent variables using the Autoregressive Distributed Lag (ARDL) model. The findings revealed that monetary policy rate, exchange rate, interest rate and money supply (Monetary Policy) were not statistically significant in influencing inflation in Nigeria. The study found that the first inflation lag was statistically significant at the one per cent level. The finding implies that inflation expectations cause inflation in Nigeria. The study recommends that the Nigerian government should formulate and implement other economic policies along with the monetary policy to control prices to reduce inflation in Nigeria

Suggested Citation

  • Morison Oghenemine Okpada & Enoh Hilda Olele, 2025. "A Test of the Monetary Theory of Inflation: An Experiment with Nigerian Data," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(6), pages 4164-4175, June.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-6:p:4164-4175
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-6/4164-4175.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/a-test-of-the-monetary-theory-of-inflation-an-experiment-with-nigerian-data/
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-6:p:4164-4175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.