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This paper provides an empirical assessment of the power of forward guidance at different horizons, shedding new light on the strength of the "forward guidance puzzle". Our identification strategy allows us to disentangle the change in future interest rates stemming from deviations from the...
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and the central bank's liquidity support measures following the Covid-19 pandemic. The liquidity measures enabled banks to … fulfil their liquidity needs primarily through participation in extraordinary liquidity auctions. The distribution of central … bank reserves across banks did not change due to these measures, but interbank trading fell sharply. Ample liquidity …
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