Currency Hoarding Monetary Policy Aggregate Consumption

This research investigates the relationship between currency hoarding and the effectiveness of monetary policy in Nigeria. Using the Autoregressive Distributed Lag (ARDL) model, we find that currency hoarding and monetary policy both have positive associations with aggregate consumption. However, the study does not conclude that currency hoarding affects the effectiveness of monetary policy on consumption. This complex interplay calls for nuanced policy measures, including tailored strategies for diverse currency hoarding motivations and improved communication to optimize policy outcomes.