gap by distinguishing the interest rate that the central bank sets from the interest rate that matters for the spending …, as well as "unconventional" central bank actions like large-scale asset purchases and forward guidance on the policy …

variation in the supply of central bank liabilities. In effect, the announcement effect has displaced the liquidity effect as … bank to lend or absorb reserves in response to differences between the policy interest rate and the corresponding target. A …, but not on the current level per se, then the central bank can alter the market-clearing interest rate with no change in …

gap by distinguishing the interest rate that the central bank sets from the interest rate that matters for the spending …, as well as "unconventional" central bank actions like large-scale asset purchases and forward guidance on the policy …