Selected Monetary and Fiscal Factors and Exchange Rate Volatility: An Empirical Analysis of Money Supply, Inflation, Foreign Reserves and External Debt in East Africa Partner States

View Full Paper

Ask AI

Bookmark

Authors

Discussion

Empirical analysis finds money supply and external debt influence exchange rates in East Africa, suggesting policy actions.

Money supply and external debt have significant positive relationships with exchange rates, indicating appreciation.
Foreign reserves negatively affect exchange rates, suggesting they stabilize currencies amidst external pressures.
Inflation does not significantly impact exchange rates, likely overshadowed by more influential macroeconomic factors.
Findings help policymakers in East Africa formulate strategies for managing economic stability, focusing on key factors.

Sang et al. (2025) studied this question.

View Full Paper

Ask AI

Bookmark