Abstract
Abstract This thesis investigates the history of the development of the monetary transmission mechanism. The theories of Tobin, Brunner and Meltzer, and Benanke are taken as case studies. The differences between these channels of monetary transmission mechanism are discussed historically and methodology. Historically, Tobin’s capital-cost channel and Benanke’s credit channel are regarded as Keynesian, while Brunner and Meltzer’s relative-price channel is more close to monetarist tradition. Methodologically, as long as the relationships between theory, model and data are concerned, Tobin’s, Brunner and Meltzer’s, and Bernanke’s empirical models perform various functions. The issues of testing and causality are studied.