Gersbach, Hans; Hahn, Volker - 2008 - This version: April 2008
, forward guidance may be used as a commitment device. In this case, policy forecasts may be desirable in a classic inflation … guidance may
be used as a commitment device. In this case, policy forecasts may be desirable
in a classic inflation …-bias framework but not in a New Keynesian framework.
Keywords: central banks, transparency, commitment, Federal Reserve, policy …