Kenya's Real Exchange Rate Determinants Unveiled: Impact on International Competitiveness
The study looked at what factors affect the value of Kenya's money compared to other countries. They used a special model to analyze both short-term changes and long-term trends. The results showed that things like government spending, trade policies, and technology advancements all impact the value of Kenya's money. They also found that when the terms of trade are not favorable, Kenya's money tends to lose value. To keep the value of Kenya's money stable, it's important for the government to manage these factors carefully.