INFLATIONARY PRESSURE, EXCHANGE RATE VOLATILITY, AND ECONOMIC GROWTH IN NIGERIA
Abstract
The study examined the inter-relationship between inflation, exchange rate volatility, and economic growth in Nigeria (1990-2023). The ex post facto research design was used with secondary time series data collected from the CBN statistical bulletin for several years. The Ordinary Least Square regression technique was utilized in analyzing the data. The OLS regression model revealed a significant negative relationship between inflation rate, economic growth, and exchange rate volatility. The results suggested that high inflation rates and exchange rate fluctuations hinder economic growth in Nigeria. The study also found an insignificant positive relationship between money supply velocity and economic growth. The study recommended that the government tighten monetary policy, improve fiscal discipline, and enhance price stability to reduce inflationary pressures and exchange rate volatility.