ISSN (Print Version) 0975-3931 ISSN (On Line Version) 2278-1277 237 Journal of Global Economy, Volume 18 No 4, December 2022 The Nexus Between Money Supply and Economic Development in East African Countries: An Empirical Study using ARDL James Daniel Chindengwike 1 Abstract; This study assesses the connection between money supply and economic growth in developing countries. The study used time series data from the National Bureau of Statistics (NBS) and the Bank of Tanzania. The study used the Auto Regressive Distributed Lag Model (ARDL). The study demonstrates that overall, the money supply has a significant favourable effect on economic expansion. Furthermore, the results demonstrate that the money supply boosts economic growth in underdeveloped nations. The study's results indicate that, on the whole, the money supply has a significantly favourable effect on economic expansion. According to the results, emerging nations' economies expand faster when more money is available. In order to forecast the future value of economic growth, the study also recommended that future studies include exogenous variables in autoregressive integrated moving averages. 1.0 Introduction Utilizing the proper policy instruments is necessary for the fulfilment of macroeconomic objectives. Monetary policy is usually the primary weapon to promote macroeconomic objectives and boost economic growth. The M3 measure of the money supply includes all of the money in circulation outside of the banking system as well as any domestic and foreign bank deposits made by citizens of the nation (Ayub & Shah, 2015). It is believed that the money supply affects economic planning and strategy. This is so because the law encourages a climate that fosters public welfare and economic development. Additionally, monetary policy is crucial in controlling the rate and size of an economy's money supply expansion. It is also an effective strategy for controlling macroeconomic issues. Typically, a range of mechanisms is used to implement this strategy, including the central bank's involvement in modifying interest rates (Brockington et al., 2018). By altering the discount rate, the interest rate is changed. A central bank will charge banks 1 School of Business and Management, Philippine Christian University, Manila, Philippines, Email: chindengwikejames@gmail.com