This paper evaluates the effects of forward guidance and large-scale asset purchases (LSAP) when the nominal interest … that forward guidance was more important in influencing inflation, while LSAP was more important in influencing output …

forward guidance on interest rates. We find that the introduction of permanent or recurring active fiscal policy dampens the … response of output and inflation to forward guidance in the New Keynesian model. Moreover, the presence of regime …-switching policy introduces expectation e ects that cause forward guidance to be less stimulative in our regime-switching model …

main points: First, the Federal Reserve's forward guidance and large-scale asset purchases are effective monetary policy …

main points: First, the Federal Reserve's forward guidance and large-scale asset purchases are effective monetary policy …

This paper studies the macroeconomic effects of central bank forward guidance when central bank credibility is … central bank's toolkit to allow for the publication of its own forecasts (Delphic guidance) and the commitment to a future … path of the nominal interest rate (Odyssean guidance). We find that both Delphic and Odyssean forward guidance increase the …