The article on this topic (the impact of money supply on the economic growth of Nigeria) is an extract from literature review of the project material. The complete project work would be made available when you subscribe for the full material.

CHAPTER ONE

LITERATURE REVIEW

THEORETICAL FRAMEWORK

   When it comes to considering the relationship between the state of economic growth and the rate at which money is supplied, it is clear that a great amount of empirical and theoretical work remain to be done. With monetary policies and association of monetary and fiscal policies in determining the exact influence of money supply, there is a sizeable literature on which this and further researchers can rely, but little of this appears to have penetrated the mainstream of what literature is required in monetary economics.

 Although, in case of difficulties in finding much of existing literature on money supply (as to compare lots on money demand), policy makers have agreed that the reason could be the inaccessibility of various channels through which money is supplied. These channels are shared by the federal Government Fiscal policies via tax cuts and budget spending and the Central Bank of Nigeria’s monetary options. Yet, having observed   that each of the above-mentioned policies exert its influence on the quantity of money stock in the economy, the issue remains the robustness of the surrounding theories. The support of the government had led to the general belief by the policy makers, that Central Banks does not take full control of the quantity of money supplied to an economy. However, our literature review is centered on the components and the impacts of monetary policy options in Nigerian economy

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