types to voters. We identify two novel implications of models in which signalling incentives are important. First, because …. Second, voters can exploit the signalling behavior of politicians by precommitting to a higher threshold for signals received …. Raising the threshold discourages signalling effort by low quality politicians but encourages effort by high quality …

We present a signalling theory of Quantitative Easing (QE) at the zero lower bound on the short term nominal interest … bank with balance sheet concerns. Numerical experiments show that the signalling effect can be substantial in both models …