monetary policy becoming available today. One example of a monetary news shock is a forward guidance announcement, where the …

We study the effect of quantitative tightening both without forward guidance and with higher for longer guidance. This …. Initially, we assume that quantitative tightening comes without forward guidance, meaning that central bank does not communicate … forward guidance which is communicated through a higher for longer pledge. In addition, this higher for longer pledge is …

forward guidance puzzle. We argue that the forward guidance puzzle is not a puzzle. We show the puzzle arises from an …

The viability of forward guidance as a monetary policy tool depends on the horizon over which it can be communicated … expectations about the policy rate up to an arbitrarily long horizon and this is the source of the so-called "forward guidance … give rise to the forward guidance puzzle is substantially limited. We also find that imperfect communication has a …

This paper provides an empirical assessment of the power of forward guidance at different horizons, shedding new light … on the strength of the "forward guidance puzzle". Our identification strategy allows us to disentangle the change in … future interest rates stemming from deviations from the systematic part of monetary policy ("target" and "forward guidance …

and borrow, subject to a borrowing constraint. We show that, in this framework, forward guidance, that is the promise by … liquidity trap. In our model, the power of forward guidance is amplified by three redistributive channels, absent in a … liquidity trap, and can make forward guidance more powerful in a HANK model than in a RANK framework. These results contrast …