Economics A-Level
Monetary policy transmission mechanism
What Monetary policy transmission mechanism means in Economics A-Level, as defined for AQA.
Definition of Monetary policy transmission mechanism
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Reference: AQA
The channels through which changes in the central bank's base rate affect the wider economy and ultimately the rate of inflation.
Topics that use Monetary policy transmission mechanism
- Central banks and monetary policy (AQA A-Level)
Related terms
- Aggregate demand
- Credit creation
- Economic governance
- Economic indicators
- Exchange rates
- Financial stability
- Hot money flows
- Inflation
Using Monetary policy transmission mechanism in the exam
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