Money Supply, Inflation and Economic Growth Nexus in Ethiopia

In countries where financial information system is vulnerable to imperfect information, it is quite challenging to see the effect of macroeconomic measures immediately. In this study, therefore, it is tried to comprehend the nexus of economic growth, inflation and money supply in Ethiopia since 1963. Linear regression using STATA software was employed to examine if robust correlation exists between the variables. The dependent variable was inflation and the independent variables were GDP and money supply as an explanatory variable and drought and war as dummy variable. Annual averages of the variables were used. The research project is conducted purely for academic qualification purpose, students of the subject matter in graduate and undergraduate level are therefore encouraged to read the book. The book contains summary of research works in the area. Above all it reveals how economic regression could be applied by employing STATA software.No need to say, this is a plus especially to students and their teachers. In addition to this, from the manuscript, professionals in an economic industry can also definitely acquire voluminous insight about the matter.