Transmission Mechanism Here

In economics, this describes how a central bank's policy decisions (like changing interest rates) travel through financial markets to impact businesses and households. Key Channels of Impact

: Interest rate shifts change the value of the local currency, making imports or exports cheaper or more expensive. transmission mechanism

: Affects the willingness of banks to lend; higher rates can reduce a borrower's net worth, making them appear riskier to lenders. In economics, this describes how a central bank's