| Asset price channel | The channel of the monetary policy transmission mechanism where changes in policy affect consumption and output through their impact on stock prices and the value of real estate.
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| Balance-sheet channel | The channel of the monetary policy transmission mechanism where changes in policy affect consumption and output through their impact on household and firm balance sheets.
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| Bank lending channel | The channel of the monetary policy transmission mechanism in which changes in policy affect consumption and output through their impact on banks' willingness to make loans.
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| Deflation | A sustained fall in the general price level; the opposite of inflation.
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| Interest-rate channel | The traditional channel of the monetary policy transmission mechanism where changes in policy affect consumption and output through their impact on interest rates.
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| Monetary policy transmission mechanism | The channels through which changes in the central bank balance sheet influence real economic activity.
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| Zero nominal-interest-rate bound | The fact that the nominal interest rate cannot fall below zero.
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