A complete understanding of the transmission mechanism of monetary policy to the real economy is important to the success of policy implementation as well as the analysis of policy impact.  Thus, appropriate policy formulation and implementation can be ensured under a dynamic economic environment. The ultimate targets of inflation and growth can be achieved simultaneously through 5 main channels including (1) the interest rate channel; (2) the asset price channel; (3) the exchange rate channel; (4) the credit channel; and (5) the expectations channel.  Next, the mechanics of these 5 channels are explained assuming an accommodative monetary policy stance.