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© 2022 by the authors; licensee Asian Online Journal Publishing Group
Growth
Vol. 9, No. 1, 1-5, 2022
ISSN(E) 2412-2068 / ISSN(P) 2518-0185
DOI: 10.20448/growth.v9i1.3815
© 2022 by the authors; licensee Asian Online Journal Publishing Group
Money Supply Movement and Food Inflation in Nigeria
Yusuff Olatunji Ashiru
Department of Economics, University of Ibadan, Nigeria.
Email: yoashiru90@gmail.com
Abstract
Among the major macroeconomic objectives of any nation is to ensure higher economic growth
without significant and persistent upward trend in the general price level. No wonder monetary
authorities do emphasis low inflation-output growth. In Nigeria, all efforts of the Central Bank of
Nigeria (CBN) to achieve single digits inflation over the years have been abortive. Against this
background, this paper examines the impact of money supply on food inflation in Nigeria using
monthly data between 1996:01 and 2021:12. The augmented Dickey-Fuller test of unit root is to
check the stationary of money supply growth and food inflation. Thereafter, an autoregressive
distributed lag model (ARDL) model is specified in order to capture both contemporaneous and
effects of money supply on food inflation and the model is estimated using the ordinary least
squares (OLS) estimation technique. The results reveal that money supply has contemporaneous
effect on food inflation. No evidence of lagged effect is found. It is therefore concluded that
controlling the growth in money supply is an effective measure to control food inflation.
Keywords: Money supply, Growth, Food inflation, Contemporaneous effect, Lagged effect, ARDL model, Nigeria.
Citation | Yusuff Olatunji Ashiru (2022). Money Supply Movement
and Food Inflation in Nigeria. Growth, 9(1): 1-5.
History:
Received: 2 February 2022
Revised: 7 March 2022
Accepted: 22 March 2022
Published: 31 March 2022
Licensed: This work is licensed under a Creative Commons
Attribution 4.0 License
Publisher: Asian Online Journal Publishing Group
Funding: This study received no specific financial support.
Competing Interests: The author declares that there are no conflicts of
interests regarding the publication of this paper.
Transparency: The author confirms that the manuscript is an honest,
accurate, and transparent account of the study; that no vital features of the
study have been omitted; and that any discrepancies from the study as planned
have been explained.
Ethical: This study followed all ethical practices during writing.
Contents
1. Introduction ......................................................................................................................................................................................... 2
2. Empirical Review ................................................................................................................................................................................ 2
3. Methodology ........................................................................................................................................................................................ 2
4. Empirical Analysis .............................................................................................................................................................................. 3
5. Conclusion ............................................................................................................................................................................................ 4
References ................................................................................................................................................................................................. 4