Economics, Econometrics and Finance
8 years ago

Efficient money demand leads to sustained economic growth and minimal inflation.

1 view
Acta Universitatis Danubius. Œconomica
The Implication of Effectivenessof Demand for Money on Economic Growth
Muritala Taiwo Adewale

Paper Summary

The demand for money affects economic growth by influencing how much people spend and invest. A study in Nigeria from 1970-2008 used math to show that efficient money demand leads to higher GDP and sustained growth with low inflation.

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