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Money Supply and Inflation: Appraising Friedman's Theory In Nigeria
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The Nigerian economy has defied many acceptable postulations in recent times. It is a common knowledge that the monetary authorities in Nigeria have had difficulties achieving a consistent single inflation digit and this has been a concern. Incidentally, the role money play in the inflationary process still remains a highly controversial issue. Although Friedman and his apostles claim that money plays an active role and leads to changes in income and prices, the Keynesian, on the other hand, argue that money does not play an active role in changing income and prices. Mr. Chime s work has helped in answering key questions regarding; the causal relationship between money supply and inflation; long run relationship between money demand and inflation in Nigeria and the stability of money demand function in Nigeria. His findings will also create avenues for effective policy making in third world economies. - Prof. Joseph Lawrence Odili
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