This study empirically examined the threshold effect of exchange rate pass-through (ERPT) on inflation in Kenya, while augmenting the exchange rate depreciation in the monetary policy rate using the Taylor rule. The monthly time series data spanning January 2005 to November 2023 was collected for analysis, in which the non-linear threshold autoregressive (TAR) model was employed as the main econometric model. This study's ERPT results reveal that, exchange rate depreciation has positive and significant effect on inflation only when it raises above the monthly threshold level of 0.51 %. In contrast, the Taylor rule analysis results reveal that the exchange rate depreciation has a positive and significant effect the monetary policy rate regardless of the threshold level of 0.67 %. Therefore, keeping domestic currency depreciation below a monthly growth rate of 0.51 % will control the pass-through effect on inflation, and the exchange rate depreciation at any level should always act as a reaction function for the monetary policy rate setting. This study also found that the relationship between exchange rate depreciation and inflation, as well as monetary policy rate is non-linear, which implies a greater pass-through effect when exchange rate depreciation is high. Therefore, we recommend the monetary authority in Kenya to pay attention to the depreciation of the exchange rate depreciation at any level when adjusting the policy rate to tame inflation.

Download full-text PDF

Source
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC11336822PMC
http://dx.doi.org/10.1016/j.heliyon.2024.e35726DOI Listing

Publication Analysis

Top Keywords

exchange rate
36
rate depreciation
28
policy rate
20
monetary policy
16
rate
14
threshold level
12
exchange
9
depreciation
9
taylor rule
8
reveal exchange
8

Similar Publications

Purpose: Diffusion-weighted arterial spin labeling (DW-ASL) MRI has been proposed to determine the rate of water exchange (K) across the blood brain barrier (BBB). This study aims to further evaluate K MRI by comparing it with standard dynamic contrast-enhanced (DCE) MRI and histology in association with mannitol-induced disruption of the BBB.

Methods: DW-ASL was measured using a multiple b-value MRI protocol in normal rats at three post-labeling delays (N = 19), before and after intra-carotid injection of mannitol to disrupt BBB in one hemisphere (N = 13).

View Article and Find Full Text PDF

Purpose: This study aims to assess whether water exchange rate (k), a surrogate for blood-brain barrier (BBB) permeability, is associated with functional outcomes in patients with acute ischemic stroke (AIS).

Methods: We studied 22 AIS patients enrolled from 1/2022 to 4/2024 who underwent multi-modal non-contrast imaging on a 3.0-Tesla scanner, including DP-pCASL, DTI, NODDI and MAP imaging.

View Article and Find Full Text PDF

Salt stress is an important factor affecting the growth and development of rice, and prohexadione calcium (Pro-Ca) plays an important role in alleviating rice salt stress and improving rice yield. However, there are few studies on how Pro-Ca improves rice yield under salt stress by regulating the source-sink metabolism. In this study, we used Guanghong 3 (salt-tolerant variety) and Huanghuazhan (salt-sensitive variety) as experimental materials to investigate the dynamic changes in the synthesis and partitioning of nonstructural carbohydrates among source-sink, the dynamic changes in related enzyme activities, the effects of the source-sink metabolism on yield in rice under salt stress and the effect of Pro-Ca during the filling period.

View Article and Find Full Text PDF

Background/objectives: Low energy availability (LEA) can cause impaired reproductive function, bone health issues, and suppressed immune function, and may result in decreased performance and overall health status. The purpose of this study was to investigate adaptions of body composition, blood status, resting metabolic rate, and endurance performance to gain more comprehensive insights into the symptoms of LEA and the adaptive effects in the athlete population (active women (n = 11) and men (n = 11)).

Methods: Three treatments were defined as 45 (EA45, control), 30 (EA30), and 10 (EA10) kcal/kg FFM/day and randomly assigned.

View Article and Find Full Text PDF

Want AI Summaries of new PubMed Abstracts delivered to your In-box?

Enter search terms and have AI summaries delivered each week - change queries or unsubscribe any time!