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Author/Editor:
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Cheng, Kevin C.
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Publication Date:
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December 01, 2006
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Electronic Access:
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Free Full text
(PDF file size is 504KB).
Use the free
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
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Summary:
This paper examines the impact of a monetary policy shock on output, prices, and the nominal effective exchange rate for Kenya using data during 1997–2005. Based on techniques commonly used in the vector autoregression literature, the main results suggest that an exogenous increase in the short-term interest rate tends to be followed by a decline in prices and appreciation in the nominal exchange rate, but has insignificant impact on output. Moreover, the paper finds that variations in the short-term interest rate account for significant fluctuations in the nominal exchange rate and prices, while accounting little for output fluctuations.
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Order a print copy
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Series:
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Working Paper No. 06/300
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Subject(s):
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Monetary policy | Kenya | Central banks | Interest rates | Exchange rates | Prices | Economic models
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Author's Keyword(s):
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Monetary Policy | monetary transmission mechanism |
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English
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Publication Date:
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December 01, 2006
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ISBN/ISSN:
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0 / 1934-7073
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Format:
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Paper
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Stock No:
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WPIEA2006300
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Pages:
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26
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Price:
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US$18.00 )
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Please address any questions about this title to
publications@imf.org
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