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Andrew Berg, Luisa Charry, Rafael Portillo, Jan Vlcek, The Monetary Transmission Mechanism in the Tropics: A Case Study Approach, Journal of African Economies, Volume 28, Issue 3, June 2019, Pages 225–251, https://doi.org/10.1093/jae/ejy022
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Abstract
Many central banks in low-income countries in Sub-Saharan Africa are modernising their monetary policy frameworks. Standard statistical procedures have had limited success in identifying the channels of monetary transmission in such countries. Here we take a case study approach and centre on a significant tightening of monetary policy that took place in 2011 in four members of the East African Community: Kenya, Uganda, Tanzania and Rwanda. We find evidence of the transmission mechanism in most of the countries. Variations across countries can be explained mainly by differences in the policy regime.