The heterogeneous interpretation of forward guidance
Philippe Andrade ()
Research Bulletin, 2015, vol. 23, 9-14
Agents interpreted differently the stance attached to the forward guidance policy of the Federal Reserve System. The heterogeneity of beliefs matters for the efficiency of this policy. Forward guidance is efficient only if private agents predominantly view it as an accommodative deviation from the normal times reaction function of the central bank. It can be detrimental if it is predominantly interpreted as a normal times reaction to a very bad shock.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbrbu:2015:0023:2
Access Statistics for this article
More articles in Research Bulletin from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().