Levin, Andrew; López-Salido, J David; Nelson, Edward; … - C.E.P.R. Discussion Papers - 2009
the interest elasticity of aggregate demand. Although forward guidance is effective in offsetting natural rate shocks of … guidance could be sufficient for mitigating the effects of a 'Great Moderation'-style shock, a combination of forward guidance …The recent literature on monetary policy in the presence of a zero lower bound on interest rates has shown that forward …