results show that the implicit inflation target and the relative weight placed on interest rate smoothing both declined with …

interest rates. In particular, we show in a dynamic macroeconomic model that if monetary policy reveals information about … economic developments, interest rates of all maturities move in the same direction in response to a policy innovation. If, on … the other hand, monetary policy reveals information about the central bank's policy preferences, short and long interest …

insurance against adverse shocks; and monetary policy should be conducted so as to keep nominal interest rates close to zero. We …