Premium
Budget Deficits, Money Growth and Price Level in Nigeria
Author(s) -
Chukwu Jude Okechukwu
Publication year - 2013
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/1467-8268.12042
Subject(s) - economics , money supply , deficit spending , causality (physics) , monetarism , cointegration , price level , monetary economics , moneyness , monetary policy , granger causality , inflation (cosmology) , macroeconomics , econometrics , debt , physics , quantum mechanics , theoretical physics
The study investigates the long‐run causal relationship amongst budget deficits, money growth and price level for Nigeria between 1971 and 2008 inclusive. 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 Toda and Yamamoto ([Toda, H. Y., 1995]) sense. Thus, the Sargent and Wallace ([Sargent, T., 1981]) ‘Unpleasant Monetarist Arithmetic’ hypothesis holds for Nigeria.
Accelerating Research
Robert Robinson Avenue,
Oxford Science Park, Oxford
OX4 4GP, United Kingdom
Address
John Eccles HouseRobert Robinson Avenue,
Oxford Science Park, Oxford
OX4 4GP, United Kingdom