Durevall, Dick; Ndung'u, Njuguna S. - Nationalekonomiska institutionen, Handelshögskolan - 1998
This paper develops an error correction model with the aim of analysing the behaviour of prices in Kenya during 1974 -1996. In estimating the model, we first test for cointegration in the money and foreign exchange markets, using the Johansen procedure. The cointegrating vectors are then...