Abstract As central banks struggle against high inflation in the aftermath of Covid-19 pandemic and war Ukraine, it is essential to understand open economy aspects determination. Using a Bayesian VAR with time-varying parameters stochastic volatility, we analyze behavior pass-through across time relation macroeconomic variables. Pass-through increases size volatility exchange rate level, varian...

A VAR framework with exogenous variable is considered to analyse the exchange rate pass-through dynamics in Kenya. Monthly time series data from January 2006 December 2022 used. Six endogenous variables namely; US dollar rate, broad money supply, total import, 20 Nairobi stock share index, consumer price index and 91 days treasury bond sourced central bank of Kenya were considered. Global food ...