The process of monetization: a case study of Kenya. 1922 - 1972
Abstract
The study is about monetary influences on the development
process. In terms of modern money, Kenya has one of the youngest
monetary systems in the world. And over the last fifty years the
system has been transformed from a currency board regime to a
central banking stage. It, therefore, provides a good opportunity
for the study of monetary influences on the pattern and pace of
economic development.
In the first chapter an analysis of the growth of the monetary
system and the economic transformation is provided. Tue period
is divided into sub-periods reflecting major changes that
occurred in the system.
Chapter two is a review of the theories of monetization, and
the role of money in growth models. Although these models are
theoretical, an attempt is made to relate some of their major
conclusions to the Kenyan case.
In Chapter three, a review of the various savings functions
is done. Tue effect of monetization on saving is analyzed, and
some measures of monetization for incorporation in savings functions
are suggested. The chapter is concluded with a review of the
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savings performance and the composition of savings in Kenya. I
conclude that both the spread of commercialization and the grov~h
of intermediation have played a significant role in the promotion
of saving in Kenya.
Chapter four examines the theory of intermediation and
resource allocation. The empirical section deals with the effect
of the Kenyan financial system on resource allocation. It is
concluded with the analysis of the effects of various financial
controls on resource allocation and possible changes to effect
a more efficient resource allocation.