THE RELATIONSHIP BETWEEN MONEY SUPPLY AND LEVEL OF NATIONAL INCOME IN NIGERIA

  • Chapters:5
  • Pages:27
  • Methodology:nil
  • Reference:YES
  • Format:Microsoft Word
(Banking and Finance)
THE RELATIONSHIP BETWEEN MONEY SUPPLY AND LEVEL OF NATIONAL INCOME IN NIGERIA
ABSTRACT

This research work is intended to evaluate the relationship between money supply and national income in Nigeria during the period over view. View about the important of money in the working of the economic varies greatly. In particular, the means by which money affects income and output and the extent of the changes in money supply affect the economy is the issue of such controversy.
Monetary policy deals with discretional control of the money supply by the monetary authorities in order to achieve desired economic good (of price stability, full employment equilibrium and/increased production output). The policy aims at achieving some specific objectives by influencing the quantity of money or the financial system liquidity.
Such objectives include the following to find out in quantitative terms, the actual relationship between money supply and national income in Nigeria during the year overview.
The broad aim of these specific objectives is to make appropriate policy recommendations.
From works consulted and data gathered the searcher found out that issues of monetary policy have tended to divided economist into monetarism and Keynesians. The researcher further discovered that there are expansionary and contra dictionary monetary measures, for controlling depression and inflation respectively.
Further, it was also observed that money supply was a determinant factor in economic activity in Nigeria. The research work was conducted using multiple regression and statistical of variance procedure.
TABLE OF CONTENT
CHAPTER ONE
1.0              Introduction
1.1       Background of the study
1.2              Statement of the problem
1.3              Objective of the study
1.4              Significance of the study
1.5              Limitation of the study
1.6              Definition of terms
CHAPTER TWO
2.0              Review of related literature
2.1       Theoretical literatures
2.2              The quantity theory of  money
2.3              Objective of the monetarist theory
2.4              Effect of an increase in money supply
2.5              Empirical literature
2.6              Factors that influence the level of money supply in an economic
CHAPTER THREE
3.0              Research design and methodology
3.1       Sources of data
3.2       Location of the data
3.3              Methods of data collection
 CHAPTER FOUR
4.0              Findings
CHAPTER FIVE
5.0              Conclusion
5.1       Recommendations
CHAPTER ONE
INTRODUCTION
1.1       BACKGROUND OF THE STUDY
Views about the important of money in the working of the economy vary greatly.  In particular, the means by which money affects income and output and the extent to which changes in money supply (that is money stock ) affect the economy are two issues that have given Nise to a major debate between two group of economists distinguished by their adherence to two conflicting bodies of economic theory called Keynesians and Monetarism.
The debate has been long and complicated and has progressed through several stages over the years.  This debate is important implications for the effectiveness of monetary policy and the importance of monetary policy relative to fiscal policy, in affecting income, output, employment and the rate of inflation.
The relationship between the stock of money and the level of income and output is fundamental to the monetarism and Keynesians debate.
1.2              STATEMENT OF PROBLEM
There have been a thousand and one views on the relationship between money supply and certain macroeconomic variables such as national income, price, and levels.
The controversy on the on the rule of money vis-à-vis national income and price level has been going on for quite a long time before the great depression of 1930s, economists believed that increases in the quantity of money would lead to increases in the price level (inflation).
However, during he great depression group of economists emerged. They held that the important factor caused income and employment to fluctuate is investment.
Thos group of economists believed hat money is not an important determinant of the level of economic activity while a separate group with a contrary view believed that money is an important determinant of level of economic activity. They also believed that once there is unemployment in the economy, increase in money supply. Leads to increases in the level of income. This group of economist supported their assertion with a lot of empirical evidence, base on the above analysis, a lot of question arose.
These question include, is money supply an important determinant of economic activity in Nigeria?
Furthermore, is there any relationship between money supply and level of national income in Nigeria? The above research questions form the problem of this research therefore; an attempt would be made to ascertain the effects of money supply on the Nigerian economy.
1.3              OBJECTIVE OF THE STUDY
The specific objectives of this research include the following: To find out whether or not there was a relationship between money supply and the level of national income in Nigeria during the period under review. The study also intended to investigation and discover which of the views about the monetary theory holds in the Nigerian context. It also ascertains to find out which of the monetary aggregates affects economic more than the others in Nigeria.
1.4              SIGNIFICANCE OF STUDY
This research work on the relationship between money supply and the level of national income in Nigeria would be of immense value t the central bank of Nigeria (CBN). The result of the research would enable the central ban of Nigeria to reform it’s primary function more effectively especially of regulating the amount of money in circulation.
This research work would enable the CBN to successfully and most efficiently carry on this function in accordance with the prescribed goals, aims or objectives of the government.
Moreover, Nigeria government or the ministry of finance, policy makers and even other researcher has a lot to gin from this research. It would also benefit students, scholars and the generality of the people who offer going through the various views and theories about the role of money supply on the economic achieving.
1.5              DEFINITION OF TERMS
Money supply simply means the total amount of money in the economy at a given point in time.
National income is the sum of all payments to factor of production. It includes compensation of employees, rent, interest and profit. It is also known as Gross National product (GNP) or Gross Domestic product (GDP).
In the other hands, National income is defined as collective wealth of a nation.


Share This

Project Details

Department Banking and Finance
Project ID BFN0268
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 27 Pages
Methodology nil
Reference YES
Format Microsoft Word

500
Leave a comment...

    Project Details

    Department Banking and Finance
    Project ID BFN0268
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 27 Pages
    Methodology nil
    Reference YES
    Format Microsoft Word

    Related Project Topics

    ABSTRACT This study is motivated by a desire to examine the auditor independence and firm performance. In light of the empirical review and other discussions, a number of questions arose as to whether there is a significant relationship... Continue Reading
    ABSTRACT From monetary theories, money supply plays simulative roles in an economy. It stimulates employment thereby ameliorating the problems of unemployment, inflation. It was this knowledge that informed the researcher... Continue Reading
    ABSTRACT This study is motivated by the fact that federal expenditure and money supply as a tool on the rate of unemployment. But to which extent, these instrument have contributed either to worsen the... Continue Reading
    THE . ABSTRACT This study examines the relation between marital success and the level of education among women. The method of data collection was the questionnaires administered to respondents.... Continue Reading
    • Type:Project
    • ID:EDU0073
    • Department:Education
    • Pages:56
    • Chapters:5
    • Methodology:simple percentage
    • Reference:YES
    ABSTRACT This study examines the relation between marital success and the level of education among women. The method of data collection was the questionnaires administered to respondents.... Continue Reading
    • Type:Project
    • ID:EDU0510
    • Department:Education
    • Pages:47
    • Chapters:5
    • Methodology:simple percentage
    • Reference:YES
    REGRESSION ANALYSIS ON NATIONAL INCOME (FROM 1998 – 2003) (A CASE OF FEDERAL REPUBLIC OF NIGERIA) TABLE OF CONTENTS CHAPTER ONE 1.0 Introduction 1.2 Statement of problem/motivation 13 Aims and objectives 1.4 Scope of the study 1.5 Significance of the study 1.6 Definition of concepts CHAPTER TWO... Continue Reading
    • Type:Project
    • ID:STS0018
    • Department:Statistic
    • Pages:60
    • Chapters:5
    • Methodology:Anova
    • Reference:YES
    REGRESSION ANALYSIS ON NATIONAL INCOME (FROM 1998 – 2003) (A CASE OF FEDERAL REPUBLIC OF NIGERIA) TABLE OF CONTENTS CHAPTER ONE 1.0 Introduction 1.2 Statement of problem/motivation 13 Aims and objectives 1.4 Scope of the study 1.5 Significance of the study 1.6 Definition of concepts CHAPTER TWO... Continue Reading
    • Type:Project
    • ID:STS0013
    • Department:Statistic
    • Pages:61
    • Chapters:5
    • Methodology:Least Square
    • Reference:YES
    THE IMPACT OF GOVERNMENT REGULATOR AGENCIES OF NATIONAL DEVELOPMENT IN NIGERIA (A CASE STUDY OF NATIONAL DRUG LAW ENFORCEMENT AGENCY (NDLEA) ABSTRACT This study is designed to x-ray the activities and the impact of government regulatory agencies on national development. In the course of this... Continue Reading
    THE IMPACT OF GOVERNMENT REGULATOR AGENCIES OF NATIONAL DEVELOPMENT IN NIGERIA (A CASE STUDY OF NATIONAL DRUG LAW ENFORCEMENT AGENCY (NDLEA) ABSTRACT This study is designed to x-ray the activities and the impact of government regulatory agencies on national development. In the course of this... Continue Reading
    (A CASE STUDY OF WATER CORPORATION AWKA) ABSTRACT This research work is aimed at finding the courses of the organization and management problems of rural water supply programme in Nigeria, with a case study of Anambra State Water... Continue Reading