We examine the effectiveness of forward guidance at the effective lower bound (ELB) in the context of the COVID-19 …-term nominal interest rates will remain at the ELB for the next several years; consequently, forward guidance would have to refer … proposed for addressing the forward guidance puzzle; (2) the central bank has imperfect credibility in making longer …

forward guidance to manage the expectations of market participants. The goal of the policy was to lower the uncertainty … disagreement, based on the professional forecasters’ survey. We found that the forward guidance introduced in 2013 lowered the …

The effectiveness of forward guidance depends on the credibility of the central bank. This paper sheds light on the … credible forward guidance that a central bank can offer by solving for the whole set of sustainable sequential equilibrium (SSE …) in a canonical New Keynesian model with occasionally binding zero lower bound (ZLB). The best credible forward guidance …

evaluate two potential reasons: forward guidance and the constraint on monetary policy imposed by the zero lower bound (ZLB … precisely at the ZLB that forward guidance was most actively used, its role cannot be ruled out. But even after the policy rate …-maturity bonds and some risky assets. This suggests that other mechanisms also played a part, including forward guidance about …

Professional Forecasters to show that, when the Fed gave guidance between 2011Q3 and 2012Q4, these two interpretations coexisted … introduce a trade-o in forward guidance policy: leveraging on the optimism of those who believe in monetary easing comes at the …

Career guidance assists students with the school-to-work transition. Based on a survey in secondary schools in Germany …, we analyze career guidance activities and how these affect career plans. The take-up of career guidance depends upon the …

We examine the implications of less powerful forward guidance for optimal policy using a sticky-price model with an …

policy whose implications are harder to understand by non-expert consumers, forward guidance. Both policies aim to stimulate …, forward guidance requires that agents understand the inflationary effects of future low interest rates to increase their … sophistication. Instead, households do not react after forward guidance announcements. These results support recent work stressing …