Effect Of Inflation On Economic Development In Nigeria:- Ike Kalu O

ABSTRACT A f O Inflation is a persistent and appreciable rise in the general level of prices. Not every rise in the price level is termed inflation. Therefore, for a rise in the general price level to be considered inflation, such a rise must be constant, enduring and sustained. The rise in the price should affect almost every commodity and should not be temporal'(Omotor, 2016). Several theories have been put in place to explain the relationship between.economic growth and inflation most of which suggest an inverse relationship between both variables. Empirically, there have been mixed findings, some researchers are ofthe opinion that inflation is negatively related to economic growth, to some other researchers such as Abdusalam and Abdullahi, (2016) among others argue that inflation positively affect economic growth in Nigeria. In economics inflation is a sustained increase in the general price level of goods and services in an economy over a period oftime. When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money a loss ofreal value in the medium of exchange and unit of account within the economy. Given the result of the estimated model, it shows that various monetary policies administered through those variables have not probably been adequately applied to help propel growth, it is concluded that monetary policy variables have contributed positively to economic growth in longrun.inflation has considerably induced economic growth in short-run