Discussion Paper
The Macroeconomic Effects of Forward Guidance
Abstract: In this post, we quantify the macroeconomic effects of central bank announcements about future federal funds rates, or forward guidance. We estimate that a commitment to lowering future rates below market expectations can have fairly strong effects on real economic activity with only small effects on inflation.
Keywords: Forward Guidance;
JEL Classification: E5;
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2013-02-25
Number: 20130225