Finally, building again on this illustrative model, we can introduce a trigger by adding an interaction term where the negative role of debt on consumption now depends on the realization of some external factor, which I will denote by the random variable 𝜖𝜖𝑡𝑡 in equation 2’’.
Furthermore, since the EAC regional integration initiative envisages a centralized approach to the policy making process, it has to be anchored on appropriate and adequate indicators and centralized statistical information. Thus the harmonization of monetary and financial statistics, among other statistics, will be critical for policy formulation and implementation within the EAC region.