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This research work is handy in the study of current inflation and economic activities in Nigeria. The inflationary hypothesis aims at finding out if there is any adequate control of inflation in relation to economic activities in Nigeria. In this project we discuss the scopes definition of term and limitation. We also discuss the definition of inflation and the effect of inflation. The review base in theories and how monetarists maintain that inflation cause by an increase in money supply it also said that monetarist theory is predicated on the assumption that there is full employment of resources and in the classical equation of exchange (Mv-Pt) there is constant velocity of circulation of money (v) their conclusion is that the arte of inflation can be reduces by controlling of money supply in an economy. In recommendation the stability in the general prices level. For instance prices giving should be avoided as much as possible. It also recommend that government should moderate the rate of inflation & should be reverse of those used to encourage full employment.


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