Mechanism — Transmission

In economics, this describes how a central bank's policy decisions (like changing interest rates) travel through financial markets to impact businesses and households. Key Channels of Impact

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

: If people believe the central bank will keep inflation low, they may moderate their own price-setting and wage demands. 🦠 Disease Dynamics In economics, this describes how a central bank's