Coenen, Günter; Montes-Galdón, Carlos; Smets, Frank - 2020
- forward guidance about the future path of interest rates, large-scale asset purchases and spending-based fiscal stimulus - in … macroeconomic performance. Forward guidance, if fully credible, is most powerful and can largely undo the distortionary effects due … to the lower bound. A combination of imperfectly credible forward guidance, asset purchases and fiscal stimulus is almost …