Glossary
A coordinating signal such as interest rate that tells banks whether to release or restrict liquidity.
Topic brief
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signaling mechanism
A coordinating signal such as interest rate that tells banks whether to release or restrict liquidity.
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Key Notes
definition
Exchange rates function internationally like interest rates domestically: they signal where nations should trade and where liquidity should move.
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Timestamped Evidence
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"...you need to understand about the system there's actually something called signaling mechanism signaling mechanism okay um so all these things are separate but..."
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"then I don't want a little bank to buy a house and this is what you're taught in an economics class but there's actually..."
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"...remember how the interest rate in a national economy is a signaling mechanism as to whether or not to increase or decrease liquidity. Well..."
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"...it? China started to buy stuff from around the world a signaling mechanism where the Bank of National Settlements is saying to the world..."
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