ABSTRACT

The study examined the impact of money supply and inflation on economic growth in Nigeria over the period of 1980-2015 using the Nigerian time series data. The study applied OLS to estimate the modeled relationship. As a matter of necessity, we subjected our variables to time series econometric tests using the Augmented Dickey Fuller (ADF) unit root test for stationary and Engle Granger co-integration procedure and other post estimation diagnostic tests. The empirical result showed that there is a positive relationship between money supply and economic growth while inflation showed a negative relationship which conforms to a priori expectations. This study therefore concluded that the government should make policies that support money supply while inflation should not be a worrisome situation because it was insignificant according to the estimated result.