The Macroeconomic Effects of Forward Guidance

Marco Del Negro, Marc Giannoni and Christina Patterson

No 20130225, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: In this post, we quantify the macroeconomic effects of central bank announcements about future federal funds rates, or forward guidance. We estimate that a commitment to lowering future rates below market expectations can have fairly strong effects on real economic activity with only small effects on inflation.

Keywords: Forward; Guidance (search for similar items in EconPapers)
JEL-codes: E5 (search for similar items in EconPapers)
Date: 2013-02-25
New Economics Papers: this item is included in nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fednls:86858

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