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Monetary Transmission Mechanism
The central bank’s policy rate works through the economy via any one, and often all, of the following interconnected channels:
Short-term interest rates;
Changes in the values of key asset prices;
The exchange rate; and
The expectations of economic agents.
129International Monetary Fund:growth of international trade and promotes employment:supports exchange;the East Asian Financial Crisis
27The Objectives of Monetary Policy:associated goal of controlling inflation.
164Currency Regimes - Dollarization and Monetary Union:union,EcuadorPanamamonetary union alone cannot confer credit-worthiness.
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