ABSTRACT. Goodfriend and Prasad maintain that monetary policy has a particularly important role to play in buffering the economy from domestic and external shocks. Mihaljek stresses that since monetary policy in Mexico is conducted within an inflation targeting framework, the central bank has to sterilize foreign exchange inflows related to oil revenues. Bhattacharya points out that the major uncertainty on monetary policy transmission in India is on the relative roles of the quantum channel.