Inflation and Economic Growth Nexus in Nigeria
Abstract
The study examined the nexus between inflation trend and economic growth pattern in Nigeria for the period 1980 to 2020. The data for the study was sourced from Central Bank of Nigeria (CBN) Statistical Bulletin covering 41 years and was analyzed using Auto Regressive Distributed Lag (ARDL) bound testing model. The empirical findings of the study revealed that inflation exerts a negative significant effect on economic growth in the long run. Hence, in Nigeria, inflation has adverse and deleterious effects on the economy. The study therefore recommended that government through the monetary authorities should always target and monitor the rate of inflation so as to ensure it remains within the targeted region and does not spiral out of control as to negatively affect the economy.
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