The rate of capital flows into the emerging markets is alarming and has become a subject of debate in the literature. It is mostly believed that capital flows are beneficial to the economies of the developing countries as it engenders the efficient allocation of global resources thereby...

The study examines the relationship between capital inflows and exchange rate for the Nigerian economy between the periods of 1986-2014. A monetary policy indicator such as M2GDP is also introduced in the model. Estimated results show that capital inflows granger cause exchange rate suggesting...