This paper investigates the underlying dynamic relationships between monetary policy, bank lending, and inflation during the post-pandemic recovery era in the East African Community. To achieve this, I analysed monthly macroeconomic data on central bank rates, consumer price index, lending...

We analyze optimal monetary policy in a sticky pricemodel where the central bank supplies money outrightvia asset purchases and lends money temporarily againstcollateral. The terms of central bank lending affect ra-tioning of money and impact on macroeconomic aggre-gates. The central bank can...