Divisia Monetary Aggregates and Demand for Money in Nigeria
|Author(s)||by Shehu El-Rasheed, Hussin Abdullah|
|Keywords||Divisia monetary aggregates; money demand; ARDL.|
|Open Access||Access PDF Open in New Tab|
The Nigerian financial system has undergone several transformations over the past few decades leading to financial innovations. These innovations have altered the definition and use of monetary aggregates as a monetary policy tool. The conventional simple sum aggregates were identified with an aggregation bias. The economy has experienced series of monetary and financial problems which requires further investigation into the causes and remedies. This paper construct the Divisia monetary aggregates (DM1 and DM2) for Nigeria using the Barnett 1980 Divisia index. Descriptive statistics were used to compare the simple sum and Divisia monetary aggregates. Using a data for 2000:1 to 2015:4 obtained from the International financial statistics (IFS) of the IMF, the study employs the ARDL approach to cointegration and estimated the demand for money function using the newly constructed Divisia aggregates. The findings suggest that Divisia aggregates performs better in explaining the variations of monetary stock in the economy. The result indicates a long run cointegration between the Divisia monetary aggregates and income, inflation, interest rate and exchange rate. Using the CUSSUM and CUSSUMSQ it was established that the demand for money is stable with the Divisia aggregates. Monetary policy should focus on monetary targeting rather than the short-term interest rate targeting. The CBN could benefit by using the Divisia monetary aggregates to better monitor output growth and inflation movements.
ARTICLE PROCESSING CHARGE
Online Publication & Two Hard Copies
|International Journal of Empirical Finance||$ 100||$ 170|
|International Journal of Financial Economics||$ 80||$ 150|
|International Journal of Management Sciences||$ 100||$ 170|
|Journal of Empirical Economics||$ 80||$ 150|
|Journal of Education and Literature||$ 60||$ 130|
|Quarterly Journal of Business Studies||$ 50||$ 120|
|Journal of Language and Communication||$ 30||$ 100|
|Studies in Social Sciences and Humanities||$ 80||$ 150|
|Journal of Social Economics||$ 30||$ 100|
|International Journal of Financial Markets||$ 30||$ 100|
|Journal of Public Policy & Governance||$ 30||$ 100|
For a peer-reviewed journal, the publication of articles plays an essential role in the development of a coherent network of knowledge. It is, therefore, essential that all publishers, editors, authors, and reviewers, in the process of publishing the journals, conduct themselves in accordance with the highest level of professional ethics and standards. The publisher is dedicated to supporting the vast efforts of the editors, the academic contributions of authors, and the respected volunteer work undertaken by reviewers. The publisher is also responsible for ensuring that the publication system works smoothly, and that ethical guidelines are applied to assist the editor, author, and reviewer in performing their ethical duties.
The editor has the following responsibilities:
1.The editor should acknowledge receipt of submitted manuscripts within two working days of receipt and ensure an efficient, fair, and timely review process.
2.The editor should ensure that submitted manuscripts are processed in a confidential manner, and that no content of the manuscripts will be disclosed to anyone other than the corresponding author, reviewers, and the publisher, as appropriate.
3.The editor should recuse himself or herself from processing manuscripts if he or she has any conflict of interest with any of the authors or institutions related to the manuscripts.
4.The editor should not disclose the names and other details of the reviewers to a third party without the permission of the reviewers.
5.The editor has the right to make the final decision on whether to accept or reject a manuscript with reference to the significance, originality, and clarity of the manuscript and its relevance to the journal.
6.The editor should by no means make any effort to oblige the authors to cite his or her journal either as an implied or explicit condition of accepting their manuscripts for publication.
7.The editor should not use for his or her own research any part of any data or work reported in submitted and as yet unpublished articles.
8.The editor should respond promptly and take reasonable measures when an ethical complaint occurs concerning a submitted manuscript or a published paper, and the editor should immediately contact and consult with the author. In this case, a written formal retraction or correction may also be required.