Abstract:
The study examined the validity of Friedman’s hypothesis and subjected to test the stability of money demand function in Nigeria over the period of 1970-2006 using the Nigerian time series data. The study applied the Granger causality test and the Distributed Lag Model (DLM) to estimate two distinct equations, while the CUSUM and CUSUM Squares test procedure was used to examine the stability of money demand function. As a matter of necessity, we subjected our variables to
