The Monetary Policy Transmission Mechanism in Industrial Countries

2006-06-01T00:00:00Z (GMT) by Bennett T. McCallum
The main objective of this paper is to develop a simplified but substantive analysis of the monetary policy transmission mechanism that is currently relevant for most industrialized economies. The discussion will accordingly presume that institutions and policy procedures are of the general type utilized in the United States, Japan, and the Euro Area. Some attention will be paid, however, to smaller industrial economies for which foreign trade is larger in relation to domestic production.