This study examined the determinants of money supply growth and its implications on inflation in Nigeria. The study employed quasi-experimental research design approach for the data analysis. This design combined theoretical consideration (a priori criteria) with empirical observations and extracted maximum information from the available data. The Nigeria’s secondary data were processed using Eview for windows econometric packages. The results of the regression showed that credit expansion to the private sector determines money supply growth by the highest magnitude in Nigeria. The results also showed a positive relationship between money supply growth and inflation in Nigeria. It demonstrated that a one (1) percent rise in money supply in the current period leads to 5.6 percent rise in inflation. All in all, our findings discovered that changes in money supply are concomitant to inflation in Nigeria and strongly support the need for regulating money supply growth in the economy. This affirms the usual argument of the Monetarist school of thought that says money matters.
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