Monetary Policy

  1. The Monetary Policy Transmission Mechanism
    1. Overview of Transmission Process
      1. Policy Rate to Market Rates
        1. Market Rates to Economic Activity
          1. Feedback Effects
          2. Transmission Lags
            1. Recognition Lag
              1. Decision Lag
                1. Implementation Lag
                  1. Impact Lag
                    1. Total Policy Lag
                    2. Interest Rate Channel
                      1. Short-Term Rate Transmission
                        1. Money Market Rates
                          1. Interbank Rates
                          2. Long-Term Rate Effects
                            1. Bond Yields
                              1. Mortgage Rates
                                1. Corporate Borrowing Costs
                                2. Real Interest Rate Effects
                                  1. Inflation Expectations
                                    1. Investment Decisions
                                      1. Consumption Decisions
                                    2. Credit Channel
                                      1. Bank Lending Channel
                                        1. Bank Capital Effects
                                          1. Liquidity Effects
                                            1. Risk-Taking Channel
                                            2. Balance Sheet Channel
                                              1. Firm Net Worth
                                                1. Collateral Values
                                                  1. External Finance Premium
                                                  2. Bank Capital Channel
                                                    1. Regulatory Capital Requirements
                                                      1. Risk-Weighted Assets
                                                    2. Asset Price Channel
                                                      1. Equity Market Effects
                                                        1. Stock Prices
                                                          1. Market Capitalization
                                                            1. Tobin's Q
                                                            2. Bond Market Effects
                                                              1. Government Bond Yields
                                                                1. Corporate Bond Spreads
                                                                  1. Duration Risk
                                                                  2. Real Estate Effects
                                                                    1. Housing Prices
                                                                      1. Commercial Property
                                                                        1. Mortgage Markets
                                                                        2. Wealth Effects
                                                                          1. Consumer Spending
                                                                            1. Portfolio Rebalancing
                                                                          2. Exchange Rate Channel
                                                                            1. Currency Valuation
                                                                              1. Nominal Exchange Rates
                                                                                1. Real Exchange Rates
                                                                                  1. Trade-Weighted Indices
                                                                                  2. Trade Effects
                                                                                    1. Export Competitiveness
                                                                                      1. Import Prices
                                                                                        1. Net Exports
                                                                                        2. Pass-Through Effects
                                                                                          1. Import Price Pass-Through
                                                                                            1. Consumer Price Pass-Through
                                                                                              1. Time Variation in Pass-Through
                                                                                            2. Expectations Channel
                                                                                              1. Inflation Expectations
                                                                                                1. Household Expectations
                                                                                                  1. Business Expectations
                                                                                                    1. Market-Based Measures
                                                                                                      1. Survey-Based Measures
                                                                                                      2. Policy Expectations
                                                                                                        1. Forward Rate Curves
                                                                                                          1. Policy Rate Expectations
                                                                                                          2. Communication Effects
                                                                                                            1. Forward Guidance
                                                                                                              1. Central Bank Credibility

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                                                                                                          4. Conventional Tools of Monetary Policy

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                                                                                                          6. Unconventional Monetary Policy Tools