Central bank official Noguchi dropped an interesting take recently—monetary policy doesn't just work through interest rates. The transmission happens through currency exchange rates and asset price shifts too.

Think about it. When a central bank adjusts policy, the immediate ripple hits forex markets. Currency values swing. That bleeds into equity markets, bond yields, and yeah, risk assets like crypto. It's all connected.

What Noguchi's really pointing at? The indirect channels matter just as much as the direct ones. Rate hikes don't operate in a vacuum. They reshape capital flows. They trigger portfolio rebalancing. Asset prices—stocks, real estate, digital assets—respond to those shifts in real time.

For anyone tracking macro trends in Web3, this matters. When traditional financial systems adjust monetary levers, crypto doesn't sit still. Liquidity conditions change. Risk appetite shifts. Understanding these transmission mechanisms gives you an edge in reading market cycles.

Bottom line: monetary policy is a multi-layered beast. Exchange rates and asset prices aren't just side effects—they're core transmission channels.