The paper investigates the various monetary policy transmission mechanisms that influence the effectiveness of monetary policy in an economy. It begins with a conceptual overview of the transmission channels, including credit, interest rates, exchange rates, and asset prices. The analysis proceeds to examine the empirical evidence on these channels, considering both developed and developing economies. The paper finds that while traditional interest rate transmission remains a key mechanism, other factors such as financial intermediation and credit conditions have emerged as critical determinants of monetary policy effectiveness. The study further explores the role of financial globalization and the increasing interconnectedness of economies in shaping the transmission mechanisms. Finally, the paper proposes policy implications for central banks aiming to enhance the transmission of monetary policy across different sectors of the economy.
Smith, E. (2023). Monetary Policy Transmission Mechanisms. Economics and Finance Research Letters, 5(1), 40. doi:10.69610/j.efrl.20230619
ACS Style
Smith, E. Monetary Policy Transmission Mechanisms. Economics and Finance Research Letters, 2023, 5, 40. doi:10.69610/j.efrl.20230619
AMA Style
Smith E. Monetary Policy Transmission Mechanisms. Economics and Finance Research Letters; 2023, 5(1):40. doi:10.69610/j.efrl.20230619
Chicago/Turabian Style
Smith, Emma 2023. "Monetary Policy Transmission Mechanisms" Economics and Finance Research Letters 5, no.1:40. doi:10.69610/j.efrl.20230619
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ACS Style
Smith, E. Monetary Policy Transmission Mechanisms. Economics and Finance Research Letters, 2023, 5, 40. doi:10.69610/j.efrl.20230619
AMA Style
Smith E. Monetary Policy Transmission Mechanisms. Economics and Finance Research Letters; 2023, 5(1):40. doi:10.69610/j.efrl.20230619
Chicago/Turabian Style
Smith, Emma 2023. "Monetary Policy Transmission Mechanisms" Economics and Finance Research Letters 5, no.1:40. doi:10.69610/j.efrl.20230619
APA style
Smith, E. (2023). Monetary Policy Transmission Mechanisms. Economics and Finance Research Letters, 5(1), 40. doi:10.69610/j.efrl.20230619
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References
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