The Channels of Monetary Transmission: Lessons for Monetary Policy
This paper provides an overview of the transmission mechanisms of monetary policy, starting with traditional interest rate channels, going on to channels operating through other asset prices, and then on to the so-called credit channels. The paper then discusses the implications from this literature for how central banks might best conduct monetary policy.
Published: Banque de France: Bulletin: Digest, no. 27, pp. 33-44, March 1996