The first transmission channel is the interest rate channel, the traditional mechanism and the one often regarded as the main channel of monetary policy  As regards the interest-rate channel of the transmission mechanism, it is important to distinguish between real and nominal interest rates. Real interest rates affect  This paper surveys the transmission mechanisms of monetary policy beyond the standard interest rate channel by focusing on how monetary policy affects the 

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One of the indirect influence effects of the price level of goods on domestic market, following the changes in exchange rate, shows its effects through the import  Justification: The interest rate may comprise two segments, the one is the rate of return and the other one is the inflation rate. As indicated by the fisher effect, it  22 Oct 2017 currency union have embraced interest rates as the instrument of choice, with the effects associated with inflation stabilization. Therefore 

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