But from the perspective of monetary policy transmission, the higher level of private sector leverage also does imply a stronger impact from interest rate changes. (leithwheeler.com)
According to him, it may bring unpredictable effects on monetary policy transmission and financial stability. (elegal.ph)
Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets. (kekselias.com)