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The Monetary Transmission Mechanism

Listed author(s):
  • Peter N. Ireland

    ()

    (Boston College)

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.

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Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 628.

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Length: 14 pages
Date of creation: 19 Oct 2005
Handle: RePEc:boc:bocoec:628
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  17. Bernanke, Ben & Gertler, Mark, 1995. "Inside the Black Box: The Credit Channel of Monetary Policy Transmission," Working Papers 95-15, C.V. Starr Center for Applied Economics, New York University.
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