Gersbach, Hans; Hahn, Volker - 2008 - This version: April 2008
In this paper we assess whether forward guidance for monetary policy regarding the future path of interest rates is … desirable. We distinguish between two cases where forward guidance for monetary policy may be helpful. First, forward guidance …-bias framework but not in a New Keynesian framework.
Keywords: central banks, transparency, commitment, Federal Reserve, policy …