Inflation in Nigeria Not Solely Tied to Money Supply: Study
In Nigeria, inflation is not always caused by changes in the amount of money in circulation. The Central Bank has been using monetary policy to control inflation, but this approach may not always work. The researchers used data from 1970 to 2011 to test the relationship between money supply and price movement. They found that inflation in Nigeria is not solely a monetary phenomenon, casting doubt on the effectiveness of using monetary policy to stabilize prices.