Transmission Mechanism -

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

: If people believe the central bank will keep inflation low, they may moderate their own price-setting and wage demands. 🦠 Disease Dynamics transmission mechanism

: Changes in policy rates affect the cost of borrowing for cars, homes, and business investments. : Interest rate shifts change the value of

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

: If people believe the central bank will keep inflation low, they may moderate their own price-setting and wage demands. 🦠 Disease Dynamics

: Changes in policy rates affect the cost of borrowing for cars, homes, and business investments.