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THE IMPACT
OF MONEY SUPPLY ON THE ECONOMIC GROWTH OF NIGERIA
THEORETICAL
LITERATURE
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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