Transmission mechanism

From ACT Wiki
Revision as of 12:32, 28 March 2016 by Doug Williamson (Talk | contribs) (Add links.)

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search


The way in which a change in an economic variable has an effect on the economy.

For example how a change in interest rates would affect rates of inflation or exchange rates.

An increase in interest rates in the UK would lead to an appreciation of the domestic currency in the foreign exchange market as the demand for Sterling increases.

See also