Transmission mechanism, monetary (monetary transmission mechanism)
The way in which monetary policy decisions ultimately affect an economy or currency area, and here again primarily output and prices. The transmission channels of such measures (impulses) are called transmission channels. Monetary policy impulses are transmitted via the interest rate channel, the credit channel, the exchange rate channel and the asset channel. – The relationships estimated in models and calculated retrospectively in statistics have become a special field of monetary theory. For the euro area, it seems clear that under normal circumstances, an increase in short-term interest rates CETERIS PARIBUS leads to a temporary contraction in output. Under ordinary economic conditions, this contraction peaks about two years after the impulse itself, and then returns to its original level. At the same time, prices gradually (gradually) decline to a permanently lower level. – See braking path, monetary policy, oil price shocks, hurricane shocks, long-lag theory, model uncertainty, thrift rule, structural uncertainty, systematomania, Taylor rule, uncertainty, word case scenario. – Cf. ECB Monthly Bulletin of August 2005, pp. 26 ff. (no transmission of the volatility of the overnight rate to longer-term interest rates can be demonstrated), ECB Monthly Bulletin of August 2008, pp. 93 ff. (broad, textbook presentation; many overviews; important references), ECB Monthly Bulletin of October 2009, pp. 69 ff. (monetary policy and money supply in the euro area; many overviews; references), ECB Monthly Bulletin of November 2011, pp. 95 ff. (basic observations on the transmission mechanism), pp. 97 ff. (effects of regulation on the transmission mechanism).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/