01745cas a2200253 a 4500 AALejournalIMF000965 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852004 1018-5941 BD-DhAAL BD-DhAAL Ndung'u, Njuguna. A Dynamic Model of Inflation for Kenya, 1974-1996 / Njuguna Ndung'u, Dick Durevall. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyses the dynamics of inflation in Kenya during 1974-96, a period characterized by external shocks and internal disequilibria. By developing a parsimonious and empirically constant error correction model the paper finds that the exchange rate, foreign prices, and terms of trade have long-run effects on inflation, while the money supply and interest rate only have short-run effects. The dynamics of inflation are also found to be influenced by food supply constraints. Moreover, inertia is important for the period up to 1993, when about 40 percent of current inflation was transmitted to the next quarter. After 1993 inertia drops to about 10 percent. Mode of access: Internet Durevall, Dick. IMF Working Papers; Working Paper ; No. 1999/097 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/097/001.1999.issue-097-en.xml IMF e-Library