AN ECONOMETRIC ANALYSIS OF THE DETERMINANTS OF MONEY SUPPLY IN THE NIGERIA ECONOMY

CHAPTER ONE

INTRODUCTION

Background to the Study

Money is one of the puzzling things in this life, yet one of the most Money is needed to buy the goods and services we want and we work to earn the money we spend. The quantity and quality of what we buy depends on the amount of money we have. It is a known facts that money iš simply paper why is it not possible to print enough to permit every one to buy all their or needs? It is understood that we are employed and paid only if they produce commodities that others want to buy with their money.

All these make one ask some questions like why not print a lot of money to provide purchasing power for every individual in the economy? WE that at times, there appears to be too much money in circulation such that money has little value and prices are high? Why it is that at times the money supply is not sufficient enough such that value is high and prices are low. It is however clear that money as a commodity affects not only us as individuals, but the economy as a whole and due to this, monetary problems are of immerse

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Updated: 28th June 2017 — 11:19 am