The Monetary Transmission Mechanism

Peter Ireland

No 628, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: The monetary transmission mechanism describes how policy-induced changes in the nominal money stock or the short-term nominal interest rate impact on real variables such as aggregate output and employment. Specific channels of monetary transmission operate through the effects that monetary policy has on interest rates, exchange rates, equity and real estate prices, bank lending, and firm balance sheets. Recent research on the transmission mechanism seeks to understand how these channels work in the context of dynamic, stochastic, general equilibrium models.

Keywords: Monetary; transmission; mechanism (search for similar items in EconPapers)
JEL-codes: E52 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2005-10-19
New Economics Papers: this item is included in nep-cba, nep-dge, nep-fmk, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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