The Role Of Monetary Policy In Combating Inflation

ABSTRACTVarious studies have reflected the relationship between the increase of money supply and the level of inflation. Generally, this is reflected by the continued rise of prices of the various products. A situation ensues where excess amounts of money tend to be chasing too few goods. In this perspective, this study tested on whether monetary policy is an effective tool in the combating of inflation. The data utilized was derived from Nigeria’s economic situations over a range of years. The period in perspective was that between the years 1985 and 2006. During this period, Nigeria faced va…