ABSTRACT

The study examines the impact of money market on economic growth in Nigeria using data for the period 1981-2013. Econometrics technique, Ordinary Least Squares Method was used to evaluate the relationship. In the model specified Gross Domestic Product is used as the constant (Dependent variable) while money market interest rate, ratio of loan to deposit, commercial bank deposit, credit to private sector are the independent variable. The study suggest that though a relationship exists between money market and economic growth, but the present state of the Nigerian money market is significantly and negatively related to economic growth. The connection between the money market and the real sector of the economy is very weak. This implies that the market has not grown to produce the needed growth that will push the Nigerian economy because of several challenges. It was therefore recommended that government should make the appropriate macroeconomic policies, legal framework and sustain the present reforms with a view to developing the market so as to promote productive activities, investments, and finally economic growth.