ABSTRACT

The study investigates the demand for money in a debt constrained Nigerian economy with the twin objectives of determining the impact of real money balances on economic growth as well as examining the impact of debt repayment ratio on real money balances in Nigeria. Using annual time series data running from 1981 to 2015, the study estimated two multiple linear regression equations. The result indicates among other things that real money balances have a significant positive impact on economic growth and the debt repayment ratio is negatively related to real money balance in Nigeria. The study recommends the effective utilization of monetary policies to check economic growth in Nigeria by pursuing policies that increase the real money balances in domestic economy.