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Monetary transmission mechanism
1. Any of several channels by which a change in the money supply of a country can cause changes in real variables. Most operate primarily within a country, but some, as through the exchange rate, operate through international transactions. 2. Any of several ways that real and monetary shocks in one economy can be transmitted to another through monetary channels involving interest rates, exchange rates, and international capital flows.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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