Abstract
This study examines the theoretical linkages and policy implications of money supply management
on macroeconomic stability in Nigeria. Using an Autoregressive Distributed Lag (ARDL) model,
the study finds that money supply has a significant impact on inflation stability and economic
growth in Nigeria. The results also suggest that fiscal policy, as represented by government
expenditure, has a significant impact on inflation stability and economic growth. The study
concludes that monetary policy, as represented by money supply and Monetary Policy Rate (MPR),
and fiscal policy, as represented by government expenditure, are effective tools for achieving
macroeconomic stability in Nigeria. The study recommends that the Central Bank of Nigeria
(CBN) should use money supply and MPR as tools to manage inflation and achieve
macroeconomic stability, while the government should use government expenditure as a tool to
manage inflation and achieve macroeconomic stability. The study also recommends coordination
between fiscal and monetary policies to achieve macroeconomic stability. The findings of this
study have implications for monetary and fiscal policy decisions in Nigeria.