In this regard, the exchange rate serves as both an automatic buffer for internal and external shocks and as an integral part of the monetary policy transmission mechanism. (bankofcanada.ca)
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)
Click on any of the links on the righ hand side of their Monetary Policy Transmission Mechanism for a very simple but informative guide to Canadian Monetary Policy. (therealestaterenegades.com)