We explore the effects of forward guidance at the zero lower bound when there is uncertainty over the lift-off date … arising from: (i) the imperfect credibility of time-inconsistent forward-guidance promises; (ii) incomplete communication. We … use a simple New Keynesian model to demonstrate that a forward guidance announcement to delay lift-off may be no more …

In this paper we present a three period setup to model central bank forward guidance in a liquidity trap. We analyze …

Issing describes forward guidance by central banks as the culmination of the idea of guiding expectations by pure … communication. In practice, he argues, forward guidance has proved a misguided idea. What is presented as state of the art monetary … policy is an example of pretence of knowledge. Forward guidance tries to give the impression of a kind of rule-based monetary …

In this paper we present a simple framework to model central bank forward guidance in a liquidity trap. We analyze the …

We propose a novel framework where forward guidance (FG) is endogenously determined. Our model assumes that a monetary …

This paper compares the effectiveness of date- and state-based forward guidance issued by the Federal Reserve since mid … interest rates’ sensitivity to macroeconomic news and I find that the Fed’s forward guidance reduces the sensitivity and … therefore crowds out other public information. The sensitivity shrinkage is stronger in the case of date-based forward guidance …

rely on forward guidance of future interventions. The effectiveness of interventions increases if they are pre …