Money, Output and Price Level in Nigeria: A Test of the Monetary Neutrality Proposition
Meshach J. Aziakpono* (Lecturer in the Department of Economics at the National University of Lesotho )
Download Article | Published On 01/03/2003


This paper presents and tests a model to determine either or both how anticipated and unanticipated money affects real output and inflation in Nigeria. The Barra two-step estimation procedure was explored. Also, the effects of devaluation and business cycles in the industrialized countries on output fluctuation in Nigeria were pursued. The evidence reveals that while anticipated money affects real output, the unanticipated money did not. Thus, the tests contradict the policy ineffectiveness proposition. Also, cyclical movements in the output 0 f industrialized countries negatively affect real output with spread effect; and devaluation exhibits a delayed positive

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