Odyssean Forward Guidance in Monetary Policy: A Primer
10 Pages Posted: 29 Jan 2014
Date Written: November 19, 2013
This article shows how central bank forward guidance can improve macroeconomic outcomes by altering current expectations of future inflation and output.
Keywords: New Keynesian monetary policy, Ramsey problem, time-consistency problem, rational expectations, macroeconomics and monetary economics, central banks and their policies, monetary policy, central banking, and the supply of money and credit
JEL Classification: E5
Suggested Citation: Suggested Citation