Financial liberalization and long-run stability of money demand in Nigeria

Arbeitspapier

A stable money demand function is essential when using monetary aggregate as a monetary policy. Thus, there is need to examine the stability of the money demand function in Nigeria after the deregulation of the financial sector. To achieve this, the study employed CUSUM (cumulative sum) and CUSUMSQ (CUSUM squared) tests after using autoregressive distributive lag bounds test to determine the existence of a long run relationship between monetary aggregate and its determinant. Results of the study show that a long-run relationship holds and that the demand for money is stable in Nigeria. In addition, the inflation rate is found to be a better proxy for an opportunity variable when compared to interest rate. The main implication of the study is that interest rate is ineffective as a monetary policy instrument in Nigeria.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: AGDI Working Paper ; No. WP/17/018

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Demand for Money ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
• Thema: Stable ; demand for money ; bounds test

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Folarin, Oludele E. ; Asongu, Simplice
• Ereignis: Veröffentlichung
• (wer): African Governance and Development Institute (AGDI)
• (wo): Yaoundé
• (wann): 2017

Weitere Informationen

• Handle: http://hdl.handle.net/10419/173624
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ