Gersbach, Hans; Hahn, Volker; Liu, Yulin - 2015 - This version: May 2015
We examine "Forward Guidance Contracts", which make central bankers' utility contingent on the precision of interest …-rate forecasts for some time. Such Forward Guidance Contracts are a exible commitment device and can improve economic performance … renewable Forward Guidance Contracts and characterize the contracts that the government wants to offer repeatedly. These …