transmission mechanism

More Like This

Show all results sharing this subject:

  • Economics


Show Summary Details

Quick Reference

The ways in which changes in incomes, prices, interest rates, etc. are spread between sectors, regions, or countries. This involves the working of both goods and capital markets, and the relation between them. A boom in industrial countries, for example, affects less developed countries (LDCs) through several channels: higher output increases the volume of LDC exports, and raises commodity prices so that their terms of trade improve, but higher interest rates worsen the balance of payments of indebted countries.

Subjects: Economics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.