The Effect of Monetary Policy on Economic Development in Nigeria
DOI:
https://doi.org/10.59413/eafj/v4.i3.5Keywords:
Monetary policy, Money supply, Human Development Index, Economic developmentAbstract
The Human Development Index (HDI) serving as a proxy for development outcomes. Annual time series data spanning 1980 to 2023 were employed. The analysis utilized the Fully Modified Ordinary Least Squares (FMOLS) technique to examine long-run relationships. Findings reveal that money supply has a statistically significant and positive effect on human development at the 5% significance level, indicating that well-managed monetary expansions can support developmental goals. Consequently, the study recommends that the Central Bank of Nigeria adopt policies aimed at increasing money supply in a controlled manner. Furthermore, it advocates for a strategic review of government expenditure to focus more on programs that enhance welfare and support the most disadvantaged groups.
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Copyright (c) 2025 Paul Atanda Orebiyi , Edidiong Prince Ekot, Etim Essien Bassey, Christiana Uduak Ekong (Author)
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IPI Value (3.94)
