This book investigates the complex relationship between the liberalization of Kenya's foreign exchange market and the subsequent challenges posed by short-term capital flows. Drawing on economic theory and empirical data, the author examines the policy decisions made regarding foreign exchange controls and their impact on the stability and growth of the Kenyan economy. The work aims to provide a nuanced understanding of the macroeconomic implications of financial liberalization in a developing country context.

The book is recognized as a significant contribution to the understanding of economic policy in Kenya and other developing nations. Its detailed analysis of foreign exchange liberalization and capital flows provides valuable insights for policymakers and academics. The work is often cited for its rigorous approach to economic issues specific to the African continent. It serves as a foundational text for those studying economic development and financial markets in emerging economies.