Money Supply, Liquidity Ratio and Economic Growth: The Nigeria Experience

Abstract

The aim of every economic policy is to ensure socioeconomic stability. This study aimed at ascertaining the impact of money supply, liquidity ratio on economic growth using data from Nigeria. Ordinary Least Square estimation technique was adopted after confirmation from pre-estimation test. The results showed that Narrow Money, Broad Money and Liquidity Ratio are not statistically significant to influence growth especially in Nigerian economy. This study however suggests that there ought to be consistent efforts from the demand and supply side plus political approach to ensure policy stability.