Abstract
The study examines the microfoundations of money demand function specifically the Sidrauski model of money in the utility function was adopted for Nigeria. Data for the study were extracted from the Central Bank of Nigeria Statistical and Economic Review Bulletin (various issues) and used Error Correction Specification which tied the short run to the long run relationships. The result of the study confirms the Sidrauski conclusion that consumption expenditure has positive impact on money demand. The study then concludes by recommending that for a developing country like Nigeria monetary policy requires careful examination of the microfoundations behavior underpinning monetary economics at the individual and market level.
Erratum
Note: The authors' names were misspelled in the print edition. The correct spellings are Kenneth Afori-Boateng and Perekunah B. Eregha.
Recommended Citation
Ofori-Boateng, Kenneth and Eregha, Perekunah B.
(2008)
"An Empirical Analysis of the Microfoundation of Demand for Money Theory in Nigeria,"
Journal of African Policy Studies: Vol. 14:
No.
2, Article 4.
Available at:
https://ecommons.udayton.edu/joaps/vol14/iss2/4