Empirical Testing of the Kumara Swamy Theorem of Inflationary Gap: Nigerian Economy in Perspective (Report‪)‬

Abstract Chronic high levels of inflation began to haunt financial markets in the late 1960s and persisted through most of the 1970s (in the wake of crude oil price shock which threatened the economies throughout the non-oil producing countries) into the 1990s ... Fama, for example, portraying a monetarist bias argued that studies should not address only inflation, but must also take into account the level of economic activity related to macro-economic parameters (variables) as this may well be the driving force behind inflation. Contrast this with the unique and well-researched Kumara Swamy Theorem of Inflationary Gap which was successfully tested for the Nigerian economy.