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Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach
Abstract
This paper investigates the effect of monetary uncertainty (MUC) on the stability of money demand function in Nigeria using the Autoregressive
Distributed Lag approach for the period of 1980-2014. The demand for money in Nigeria is specified as a function of income, domestic interest rate,
inflation, nominal exchange rate and MUC. The effect of MUC on money demand function has not been previously studied in the demand for money
literature in Nigeria. The results from the bound testing indicate that MUC, income, domestic interest rate, inflation, exchange rate and broad money
(M2) are co-integrated. The finding shows that MUC has a significant influence on the demand for money function in Nigeria. Evidence has shown
a unidirectional causality running from MUC to money demand without feedback. The CUSSUM and CUSSUMSQ stability test established that the
broad money demand function in Nigeria is stable over the period under study. By implication the monetary policies aimed at monetary targeting
could be very effective even when there is the presence of significant MUC.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
March 1, 2017
Submission Date
March 1, 2017
Acceptance Date
-
Published in Issue
Year 2017 Volume: 7 Number: 1
APA
El-rasheed, S., Abdullah, H., & Dahalan, J. (2017). Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach. International Journal of Economics and Financial Issues, 7(1), 601-607. https://izlik.org/JA77KJ57CB
AMA
1.El-rasheed S, Abdullah H, Dahalan J. Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach. IJEFI. 2017;7(1):601-607. https://izlik.org/JA77KJ57CB
Chicago
El-rasheed, Shehu, Hussin Abdullah, and Jauhari Dahalan. 2017. “Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach”. International Journal of Economics and Financial Issues 7 (1): 601-7. https://izlik.org/JA77KJ57CB.
EndNote
El-rasheed S, Abdullah H, Dahalan J (March 1, 2017) Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach. International Journal of Economics and Financial Issues 7 1 601–607.
IEEE
[1]S. El-rasheed, H. Abdullah, and J. Dahalan, “Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach”, IJEFI, vol. 7, no. 1, pp. 601–607, Mar. 2017, [Online]. Available: https://izlik.org/JA77KJ57CB
ISNAD
El-rasheed, Shehu - Abdullah, Hussin - Dahalan, Jauhari. “Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach”. International Journal of Economics and Financial Issues 7/1 (March 1, 2017): 601-607. https://izlik.org/JA77KJ57CB.
JAMA
1.El-rasheed S, Abdullah H, Dahalan J. Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach. IJEFI. 2017;7:601–607.
MLA
El-rasheed, Shehu, et al. “Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach”. International Journal of Economics and Financial Issues, vol. 7, no. 1, Mar. 2017, pp. 601-7, https://izlik.org/JA77KJ57CB.
Vancouver
1.Shehu El-rasheed, Hussin Abdullah, Jauhari Dahalan. Monetary Uncertainty and Demand for Money Stability in Nigeria: An Autoregressive Distributed Lag Approach. IJEFI [Internet]. 2017 Mar. 1;7(1):601-7. Available from: https://izlik.org/JA77KJ57CB