The transmission mechanism of monetary policy.How central banks attempt to control the price level.Affect the economy by influencing short-term interest rates. 

Discuss the factors that determine the time-lag between the application of instrument or tool of monetary policy and the achievement of the ultimate goal.

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The transmission mechanism of monetary policy refers to how central banks influence the economy by adjusting certain policy instruments or tools to control the price level and influence shortterm inte... View the full answer