Transmission mechanism one calls the effects of monetary political decisions in particular on the national economy and on the price level. The monetary policy of the issuing bank affects the financing conditions (e.g. by change of the money basis), the economic situation and inflation expectations in a national economy and can thereby goods, rate of exchange and fortune prices affect.

The monetary political impulses are transferred over individual connections (transmission channels). Often one differentiates here between interest channel, credit channel, rate of exchange channel and fortune channel. The monetary policy works by all channels, but differently - depending upon e.g. Financial structure of the restaurant subjects of the fortune positions, running time of the financial instruments etc.).

Individual effects evaluate the different economic thinking school differently. Thus e.g. the Keynesianismus emphasizes the transmission of monetary political impulses on the GROS DOMESTIC PRODUCT more strongly than the monetarism, while a special influence on the price level to the latter monetary policy attaches.

Articles in category "Transmission mechanism"

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