The study examines money supply and

The study examines money supply and inflation rate in Nigeria. Secondary data that ranged between 1970-2008 were sourced from the CBN Statistical Bulletin. The study used Vector Auto Regressive (VAR) model. The stationary prop-erties of the model were also explored. The results revealed that money supply and exchange rate were stationary at the level while oil revenue and interest rate were stationary at the first difference. Results from the causality test indicate that there exists a unidirectional causality between money supply and inflation rate as well as interest rate and inflation rate. The causality test runs from money supply to inflation, from the interest rate to inflation and from interest rate to money supply. The paper concludes that government should use the level of inflation as an operational guide in meas-uring the effectiveness of its monetary policy.
Keywords: Money Supply; Inflation; Development and VAR

Hasil (Bahasa Indonesia) 2:

Studi ini meneliti uang beredar dan tingkat inflasi di Nigeria. Data sekunder yang berkisar antara 1970-2008 yang bersumber dari CBN statistik Bulletin. Penelitian ini menggunakan Vector Auto Regressive (VAR) model. Stasioner prop-erti model juga dieksplorasi. Hasil penelitian menunjukkan bahwa jumlah uang beredar dan nilai tukar yang stasioner pada tingkat sementara pendapatan minyak dan suku bunga yang stasioner pada perbedaan pertama. Hasil dari uji kausalitas menunjukkan bahwa terdapat kausalitas searah antara jumlah uang beredar dan tingkat inflasi serta suku bunga dan tingkat inflasi. Uji kausalitas berjalan dari uang beredar terhadap inflasi, dari tingkat suku bunga inflasi dan dari suku bunga uang beredar. Makalah ini menyimpulkan bahwa pemerintah harus menggunakan tingkat inflasi sebagai panduan operasional di meas-uring efektivitas kebijakan moneter.
Kata kunci: Uang Beredar; Inflasi; Pengembangan dan VAR