The mechanism is initiated in changes made to the money market interest rates, or in technical terms, changes to the overnight rates in the interbank market, which can be referred to as the wholesale market for cash and reserves.
3  For a discussion of these episodes, see Atkin T, M Caputo, T Robinson and H Wang (2014), “Macroeconomic Consequences of Terms of Trade Episodes, Past and Present”, RBA Research Discussion Paper No 2014–01; and Battellino R (2010), “Mining Booms and the Australian Economy”, RBA Bulletin, March, pp 63–69.