Earlier observers who said that  1  For an overview, see, for instance, Bernard et al (2007). 2  More particularly, once countries become more exposed to trade, higher foreign competition will have two impacts: On the one hand, this will lead to shrinking operating profits of domestic firms in domestic markets, which will force the least productive firms to exit the market.
It adjusts market liquidity and interest rates by conducting transactions in the financial markets, and transmits monetary policy signals to the financial sector through the financial markets, thus influents the output and overall price level of the real sector. Indirect monetary policy instruments are mainly open market operations supplemented by other means such as rediscount window.