 In last few lectures, we have completed all transmission mechanisms of monetary policy which are there or which are discussed in the literature on monetary policy. So, we have completed that topic. Now at the end, I would like to share with you the lessons which we learned from that topic. So, these are the lessons which we learned from those topics. Now at the end, I would like to summarize them. So, first lesson. The first lesson which we learned from the topic of the whole monetary policy transmission mechanism is that the stance of monetary policy. Stance means that monetary policy is expansionary or tight because our transmission starts from here. If it is expansionary, then it will be like this. So, remember the stance that you want to see if it is tight or loose, it is always measured in terms of real interest rate. You cannot say from nominal interest rate that policy is tight or policy is loose. Until you do not see real interest rate, that is why our transmission channel starts from real interest rate. So, except for one where the debt obligation was discussed, the payments were fixed in nominal terms. So, that started from nominal interest rate. This means that real interest rate is important. If you want to see if policy is loose or policy is tight and what effects it will have on the economy. First, it is necessary to know that tight or loose, it all depends on real interest rate. You cannot say from nominal interest rate that policy is tight or policy is loose. Second lesson. The second lesson is that we came to know that the other asset prices play a very important role in the monetary transmission mechanism. We had seen that in other price channels, we had read three transmission channels. So, you should be clear that the interest rate is the return on bonds. The interest rate is the return on bonds. And since the bond price is 1 to 1 inversely related, this means that we can call it the bond price or the money price. But we know that there are other assets and the prices of other assets or the return of them play a very important role in the monetary transmission mechanism. This means that whenever you want to see interest rate, which is the return on bonds, then you have to see in a relative sense that the return on bonds is relative to the return on other assets. Whether it is equity or housing or any other real asset. Now, if in short term, real interest rate is low, that means the price of bonds or the interest rate is high, that means the rate of return on bonds is low. But at the same time, the rate of return on other assets is low. And at that time, your currency is appreciated. Appreciated means that you have kept the domestic currency value historically high. So, despite the interest rate low, but still the value of your currency is high and the return on other assets or their prices are also low. This means that it can be in a relative sense, but despite the interest rate low, it cannot be low in a relative sense and the policy is tight. So, you can only see the nominal interest rate and decide whether the policy is tight or loose. And you can only see the real interest rate alone in isolation and decide whether the monetary policy is tight or loose. You have to see it in comparison to other asset prices. Now, let's move on to the third lesson. The third lesson is that monetary policy can revive a weak economy even if the interest rate hits zero lower bound. I told you in a lecture that if there is a financial crisis, then the interest rate is reduced and the interest rate is close to zero. So, let's assume that the interest rate is almost zero. Now, you know that our transmission channel says that when the central bank reduces the short term interest rate, then the nominal interest rate is reduced to a real interest rate and a long term interest rate is reduced. Now, when the interest rate goes to zero, then there is no margin to cut the central bank's further interest rate. So, how will the real interest rate be reduced or how will the long term interest rate be reduced? So, remember that we have read that there is a channel for this. It means that when the central bank starts purchasing assets in a large amount, that is, the assets that are regularly used in the OMO or in the discount loans, and then it starts purchasing more assets and then it starts purchasing at a large scale, then the reserves of the banks are increased. And that means that the long term interest and the prices of assets are increased because the demand has increased from the central bank. So, you know that when the prices of assets increase, that means their return or their interest is reduced. So, that means that if the long term assets start purchasing at the central bank, then the short term interest rate is reduced and the prices of long term assets increase and the rate of return or the interest rate is reduced. On the other hand, we also saw that if the central bank shows this commitment that the interest rates that we have brought to zero will be kept on the lower side for a long time. So, from this, an expectation is born, an expectation is revised by people and how people expect that if the interest rate remains the same for a long time, then that means inflation can be in the future. So, their expected inflation rate in the future time period is high. And since the real interest rate comes from the nominal interest rate, the inflation rate minus comes from the expected inflation rate, then the real interest rate is reduced. Despite this, the nominal interest rate was already zero and the central bank is not even cutting it, then the real interest rate can be reduced. Then there is a fourth lesson. The fourth lesson is that whenever we saw a channel of unanticipated price level, then whenever the unanticipated price level increases or decreases, then we saw that ultimately the aggregate demand affects and the aggregate demand affects the economic activity and the output. This means that if unanticipated price changes continue, then the economy's output will fluctuate, it will not be stabilized. This means that if the government, if the monetary authority wants that the output and prices remain stable, then unanticipated policy changes will have to be controlled, that is, it will have to be avoided. From here, there is a justification. There is an issue of price deflation. So, remember that if inflation becomes inflatable, then this is problematic. If deflation becomes inflatable, then this is also a problem. Remember that the unanticipated price change, whether it is increased or decreased, if inflation is unanticipated or deflation is unanticipated, both the inflation rates and the output will have an effect, both of them will be volatile. This means that there is an implication of monetary policy that one of the objectives of monetary policy should be to stabilize inflation and stabilize prices.